ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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money supply statistics are a state secret.
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the Federal Reserve does not employ or report different measures of the money supply.
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the “moneyness” or liquidity of an asset is a matter of degree.
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economists find disagreement interesting and refuse to agree for ideological reasons.
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Detailed explanation-1: -Even economists have no single, precise definition of money because. the “moneyness” or liquidity of an asset is a matter of degree. Recent financial innovation makes the Federal Reserve’s job of conducting monetary policy. more difficult, since the Fed no longer knows what to consider money.
Detailed explanation-2: -Economists define money (also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts. Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money.
Detailed explanation-3: -money, a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed; as currency, it circulates anonymously from person to person and country to country, thus facilitating trade, and it is the principal measure of wealth.
Detailed explanation-4: -Cash on hand is considered the most liquid type of liquid asset since it is cash itself.