Money is the most liquid asset available because it is a medium of exchange. So the correct answer is option (b) it is a medium of exchange.
Even though it is a good shop of value, cash isn't always a great keep of cost. Inflation slowly erodes the purchasing electricity of cash over time. Second money is a unit of account. You could consider money as a yardstick-the tool we use to degree fee in economic transactions.
Forex and cash are mediums of change. They are essential for an economic system for green buying and selling and boosting the activities related to alternate and trade. Extensively, they've purchasing energy, saved price, and commonplace terminology and act as a trendy unit size.
Money's maximum critical function is as a medium of trade to facilitate transactions without money, all transactions would must be performed by barter, which includes direct exchange of 1 excellent or service for another.
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