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Which of the following assets is the most liquid?    Certificates of deposit.     Dollars.    ...

Which of the following assets is the most liquid?

  

Certificates of deposit.

   

Dollars.

   

Bonds.

   

Passbook savings deposits.

   

Money market mutual fund shares.

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Homework Answers

Answer #1

1 - Option C

Inflation rate is very high

This leads to the decrease in the value of money over time

2 - Option B

Liquidity

3 - Option B

Dollars

The currency is the most liquid asset

4 - Option C

Smaller

This is because the money is not being deposited in banks , hence money creation process will be slow.

5 - Option A

Money acts as a common unit of measurement allowing us to compare the relative value of the goods and services

The other options are not correct explaination of the unit of account function.

6 - Option C

Accepted by law regardless of its intrinsic value

7 - Option B

Dollars

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