the liquidity of money refers to group of answer choices the amount of gold it is backed by. asymmetric information. how quickly it can be disposed of without high transaction costs. the standard of deferred payments and how quickly those payments can be made.

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19-12-2022
Business

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the liquidity of money refers to group of answer choices the amount of gold it is backed by. asymmetric information. how quickly it can be disposed of without high transaction costs. the standard of deferred payments and how quickly those payments can be made.

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PallaviB PallaviB · Answer 1 · 2022-12-23T23:32:42-05:00

Liquidity of money refers to the use of money to quickly purchase goods and services without incurring transaction costs. It helps in determining how much an individual or business can buy for a given amount of money.

The liquidity of money is generally determined by the standard of deferred payments and how quickly these payments can be made. For example, if a person has a checking account, they can easily make payments with a few clicks, thus providing them with liquidity. On the other hand, if one owns gold, the liquidity of one's money depends on the amount of gold one owns.

Asymmetric information also affects the liquidity of money because it may not be possible to easily determine the value of an asset if all the necessary information is not available.

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