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State with the reasons whether you agree or disagree with the following statements:

Money is the most liquid asset.

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Yes, I agree with the statement. 

  • Money is the most liquid asset because it is generally acceptable.
  •  It is a 100% liquid asset in the sense that it can be converted into any type of asset with no loss in its value
  • Money helps to transfer immovable properties like land by selling it at one place and purchasing similar property at another place or from one person to another without any difficulty. 
  • In other words, it makes illiquid assets like land, buildings, etc., into liquid assets.
  •  Money as a store of value is also the most liquid asset, as compared to other assets like diamonds, houses, land, etc.

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asked Dec 24, 2021 in Economics by RidhiKumari (35.7k points)

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