The two basic ways to define money are
A) the transactions approach and the fiduciary approach.
B) the M1 approach and the M2 approach.
C) the transactions approach and the liquidity approach.
D) the liquidity approach and the store of value approach.

Question

Quizplus · Accepted Answer

The two basic ways to define money are the transactions approach and the liquidity approach. The transactions approach defines money as anything that is widely accepted as a means of payment in transactions. The liquidity approach defines money as anything that can be easily converted into a means of payment without loss of value.

The Two Basic Ways to Define Money Are