Holding nonmonetary assets and converting them to money when necessary is justifiable so long as
A)nonmonetary assets pay an interest rate above that available on money.
B)nonmonetary assets pay an interest rate below that available on money.
C)money,and not nonmonetary assets,are generally used in transactions.
D)money and nonmonetary assets are both used as bartering items.

Question

Quizplus · Accepted Answer

Holding nonmonetary assets is justifiable if they offer a higher interest rate than money, compensating for the lack of liquidity.

Holding Nonmonetary Assets and Converting Them to Money When Necessary