M1 is the most _____ of all assets because as a medium of exchange, it requires no conversion.
A) illiquid
B) insolvent
C) liquid
D) tangible

Question

Quizplus · Accepted Answer

M1, which includes physical currency and demand deposits, is the most liquid asset because it can be easily and immediately converted into goods or services without the need for an additional conversion. Illiquid assets would require more time or effort to convert, while insolvent assets have negative value. Tangible assets may have some value but do not necessarily function as a medium of exchange.

M1 Is the Most _____ of All Assets Because as a Medium