What distinguishes money from other assets.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

In a paragraph, no bullet, points please answer the question and follow the instructions. Give only the solution: Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all. 6.Draw a standard Commercial Bank Balance Sheet and briefly explain each of the main components.

C1 The following model can be used to study whether campaign expenditures affect election outcomes: voteA = 0 + B₁ log(expendA) + ẞ₂ log(expendB) + ẞ3 prtystrA + u, where voteA is the percentage of the vote received by Candidate A, expendA and expend are campaign expenditures by Candidates A and B, and prtystrA is a measure of party strength for Candidate A (the percentage of the most recent presidential vote that went to A's party). == (i) (ii) (iii) (iv) What is the interpretation of B₁? In terms of the parameters, state the null hypothesis that a 1% increase in A's expenditures is offset by a 1% increase in B's expenditures. Estimate the given model using the data in VOTE1.DTA and report the results in usual form. Do A's expenditures affect the outcome? What about B's expenditures? Can you use these results to test the hypothesis in part (ii)? Estimate a model that directly gives the t statistic for testing the hypothesis in part (ii). What do you conclude? (Use a two-sided…

In a paragraph, no bullet, points please answer the question and follow the instructions. Give only the solution: Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all. 10. What is Tinbergen’s constraint? Explain its importance in regard to US monetary policy.

Answer 2

Question

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Answer 6

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Assets: Assets are any tangible or intangible items in an economy that can be owned and controlled and are used for producing value.

Answer 7

Chapter 21, Problem 1QR

To determine

What distinguishes money from other assets.

Answer 8

Expert Solution & Answer

Explanation of Solution

Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by an economy for this purpose is considered as money. It is usually metal coins and paper currencies.

The assets are anything that can be tangible or intangible which can be owned and controlled in order to produce value. The companies hold these to produce a positive value in the economy. The buildings, machineries and the capital are the main assets of an economy.

Thus, it can be easily concluded that both money and assets are valuables and both have some value. However, the main difference between the money and assets is in the case of liquidity. Liquidity is the easiness in buying and selling of the assets in the market without many changes in the price. In this regard, money is the most liquid one than the other assets. All other assets widely vary in their liquidity rate and this is the main case that distinguishes money from all other assets.