Money is an asset that is generally accepted in payment for goods and services or repayment of

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Money is an asset that is generally accepted in payment for goods and services or repayment of debts.

a. Money has three basic uses:

i. Means of payment ii. Unit of account iii. Store of value

b. Money is liquid. Liquidity is the ease with which an asset can be turned into a means of payment.

c. For financial institutions, market liquidity is the ease with which they can sell a security or loan for money. Funding liquidity is the ease with which they can borrow to acquire a security or loan.

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Mar 21, 2024 02:02 AM

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Money is an asset that is generally accepted in payment for goods and services or repayment of

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Money Banking And Financial Markets

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