Answer to Question #207772 in Economics for Nonhlanhla

Question

Which of the following statements is NOT correct?

a. A balance in a demand deposit can used as a medium of exchange.

b. A liquid asset is an asset that can easily be sold and transformed into money.

c. A share in a mining company may be regarded as money because it can be used to conserve wealth.

d. Gold bars are not money because they are not generally acceptable as a medium of exchange.

Answer 1

A store of value is an asset, currency, or a commodity that can be stored and retrieved at a later date without losing its value. But shares are risky store of value, so the incorrect statement is c.