what is the liquid form of currency
Answers
Answered by
1
Liquidity is the relative measure of how easy it is to get stuff with other stuff.
An extremely common, extremely liquid form of currency is cash. You can purchase almost anything with cash, so it's highly liquid. It moves around really easily.
Something that isn't liquid looks less like a common idea of currency. Non-liquid currency can be money you have in a Treasury bill, basically a loan you give to the US Government. When you give the government money, you get a bill that’s worth a certain amount more than you paid. After a while, you turn that bill into the government and they give you the amount in cash. These bills are still considered money, but you sure can’t buy a candy bar at a corner store with one.
An extremely common, extremely liquid form of currency is cash. You can purchase almost anything with cash, so it's highly liquid. It moves around really easily.
Something that isn't liquid looks less like a common idea of currency. Non-liquid currency can be money you have in a Treasury bill, basically a loan you give to the US Government. When you give the government money, you get a bill that’s worth a certain amount more than you paid. After a while, you turn that bill into the government and they give you the amount in cash. These bills are still considered money, but you sure can’t buy a candy bar at a corner store with one.
Similar questions