The most liquid form of money is M3.

Question

Quizplus · Accepted Answer

M3 is a broad measure of the money supply that includes all the components of M2 (such as currency, checking deposits, and savings deposits) and adds several less liquid components, such as large time deposits, institutional money market funds, and short-term repurchase agreements. Therefore, M3 is not the most liquid form of money. Currency (physical cash) is generally considered to be the most liquid form of money because it can be used to make immediate transactions without any delay or loss of value.

The Most Liquid Form of Money Is M3