Why do individuals hold money when it does NOT provide the services that,say,a house does?
A) Money is the most liquid asset.
B) Money is the only form in which wealth may be held.
C) Money increases in value faster than other assets.
D) Money is useful in avoiding taxes on certain transactions.

Question

Quizplus · Accepted Answer

Money is the most liquid asset, meaning it can easily be converted into other forms of assets or used for transactions. While a house may provide services such as shelter and rental income, it is not as easily converted into cash or used for transactions as money. Holding money allows individuals to have readily available funds for unexpected expenses or opportunities.

Why Do Individuals Hold Money When It Does NOT Provide