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definition: Money is the most liquid of all assets but does not pay a return, so...

definition: Money is the most liquid of all assets but does not pay a return, so loses value with inflation.

what does it mean by "does not pay a return"?

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Ans- As we know that money in the hand is the most liquid assets but does not pay a return, so loses value with the inflation. The impact inflation has on the time value of money is that it decreases the value of a dollar over time. The time value of money is a concept that describes how the money available to you today is worth more than the same amount of money at a future date. That's why the money does not a pay a return because inflation has Decreasesed the value.

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