ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Requiring prior authorization from bank to access funds
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Easiest exchange of cash and goods and services
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M2 measure of money
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Foreign Deposits
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Detailed explanation-1: -Ans: Liquidity of money refers to the ability by which money can be immediately converted into goods and services required by the holder of money. Money is considered to be the most liquid asset because it can be easily converted into other assets.
Detailed explanation-2: -Money helps to facilitate trade because people in the economy generally recognize it as valuable. Money is called medium of exchange because money is a widely accepted token that can be used for exchange of any good or service. In old days, barter system was used as medium of exchange and later it was gold.
Detailed explanation-3: -Money is used as a medium of exchange because it’s the intermediary in the exchange process.
Detailed explanation-4: -Answer and Explanation: The correct answer is d. Money that is widely accepted in exchange for goods and services . In an economy, the medium of exchange function of money refers to the use of money by different individuals to exchange products/services.