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.

Related Book For answer-question

Government and Not for Profit Accounting Concepts and Practices

ISBN: 978-1118155974

6th edition

Authors: Michael H. Granof, Saleha B. Khumawala

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Posted Date: May 08, 2021 07:45 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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Expert Answer:

a To summarize money has taken many forms through the ages but money consistently has three functions store of value unit of account and medium of exc... View the full answer

Government and Not for Profit Accounting Concepts and Practices

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