People hold money as an asset rather than other assets because

Question

Quizplus · Accepted Answer

People hold money as an asset because it is highly liquid, meaning it can easily be converted into other goods and services. Money can be used for transactions and can be easily exchanged for other assets, making it a more desirable asset to hold than other assets that may be less liquid. Money may not necessarily hold its value or grow in value, and there may be some opportunity cost to holding money as an asset (i.e. the potential earnings from investing in other assets).

People Hold Money as an Asset Rather Than Other Assets