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Why is money called the most liquid asset?

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Question

Why is money called the most liquid asset?

Options

  • It is used to measure prices in the market

  • It is accepted for future payments

  • It can be easily changed into goods or services

  • It helps to compare incomes across countries

MCQ
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Solution

It can be easily changed into goods or services

Explanation:

Liquidity means money can be quickly and easily converted into any good or service needed.

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