ponyolovezsosuk5146 ponyolovezsosuk5146
  • 14-08-2020
  • Business
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Even though money loses purchasing power during inflationary periods, people still choose to hold part of their wealth in the form of money because:

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ogorwyne
ogorwyne ogorwyne
  • 15-08-2020

Answer:

Money is an asset with the characteristics of liquidity

Explanation:

people still choose to hold part of their wealth in the form of money because money has characteristics of liquidity, that is, as an asset money can easily be accessed. And during inflation when prices of commodities have skyrocketed, more money would be required for business transactions. Money can easily be exchanged while doing any form of transaction.

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