Liquidity is defined as
A) the ease with which a given asset can be converted to a store of value.
B) the ease with which a given asset can be converted to a unit of account.
C) the ease with which a given asset can be converted to a medium of exchange.
D) the ease with which a given asset can be converted to a standard of deferred payment.
Answer: C
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An example of physical capital is:
A. a tractor. B. a high-yield seed varietal. C. a farmer. D. All of these are examples of physical capital.
Khan wants to see his family this upcoming summer. He knows when he will travel well in advance, and he does not care what time he flies or how long the flight takes. Khan will probably ______.
a. have to pay more for his tickets than someone flying prime daytime hours b. have to pay more for his tickets than someone flying with no advance notice c. pay less for his tickets than someone who wants a quick flight with no layovers d. pay the same amount for his tickets as anyone else flying to the same place
When you are working, you pay more unemployment insurance than you get from it and when you're unemployed, you get more from it than you pay in. That's why the insurance is called
a. an automatic stabilizer b. an automatic destabilizer c. a discretionary stabilizer d. a destabilizing influence on the Phillips curve e. a stabilizing influence on the Phillips curve
European countries tend to rely more on consumption taxes than does the United States
a. True b. False Indicate whether the statement is true or false