Other assets are inferior to money in the sense that
A)they increase in value more slowly than does money.
B)they have a lower overall return than money.
C)they are more vulnerable to losing their real value as inflation increases.
D)they generate transactions costs when they are exchanged for money.

Question

Quizplus · Accepted Answer

Other assets such as stocks, real estate, or commodities can incur transaction costs when they are exchanged for money, whereas money can be used directly in transactions without incurring additional costs.

Other Assets Are Inferior to Money in the Sense That