Question

The economic term money can BEST be defined as
A. any item of value that can easily be converted into cash.
B. any financial asset that contributes to an individual's wealth.
C. any item of value that holds its worth over a long period of time.
D. any asset that can easily be used to purchase goods and services.

Answer 1

Money can be cash: so option A does not make sense, since it requires that it be converted into itself.

Also, not every financial asset (option B) is money: property isn't.

Further, option C is also false: money can loose value over time!

The correct answer is:D. any asset that can easily be used to purchase goods and services.