Money Is the Most Liquid Asset Available Because

question 70

Multiple Choice

Money is the most liquid asset available because

• A)it is a store of value.
• B)it is a medium of exchange.
• C)it is a unit of account.
• D)it has intrinsic value.

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Definitions:

Risk Averse

Describes an individual or entity's preference to avoid risk, where they prioritize certainty and are willing to accept lower returns in exchange for greater certainty or security.

High-Technology Stocks

These are shares in companies involved in high-tech industries, known for rapid innovation and growth potential but also higher risk.

Long-Term Government Bonds

Debt securities issued by a government with a maturity of typically more than ten years, used to fund public expenditures.

Expected Return

The anticipated gain or loss from an investment over a period, considering both the probability of outcomes and the impact of different outcomes.