Stocks and bonds are financial assets, but they are not highly-liquid financial assets like cash or checking accounts. Therefore, they are not considered to be money. Money is typically defined as a medium of exchange that is widely accepted and easily transferred between parties, whereas stocks and bonds are not typically used as a means of payment.

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Stocks and Bonds Are

Question 25

Multiple Choice

Stocks and bonds are

A) financial assets;therefore,they are considered to be money
B) highly-liquid financial assets;therefore,they are considered to be money
C) not highly-liquid financial assets;therefore,they are not considered to be money
D) widely accepted means of payment;therefore,they are considered to be money
E) not financial assets;therefore,they are not considered to be money

Correct Answer: