People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is
A)extremely liquid.
B)a unique good for which there are no substitutes.
C)the only thing accepted in economic exchange.
D)backed by gold.

Question

Quizplus · Accepted Answer

Money is highly liquid, meaning it is easily and readily exchangeable for goods and services, making it a convenient medium of exchange even during inflationary episodes. Other assets, such as stocks or real estate, may be more valuable in terms of long-term investment, but are less liquid and may not be as easily exchangeable.

People Hold Money Even During Inflationary Episodes When Other Assets