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11 September, 01:06

Economists studying the money supply categorize the status of the money based on?

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  1. 11 September, 02:28
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    They categorized the status based on Liquidity

    Liquidity describes how easy that money can be used for a quick payment without necessarily affect the overall value of the assets.

    For example we have 10,000 in cash. If that cash is retained to pay a $ 10,000 Debt to another company, that cash is categorized as non liquid, which meant we can't really use it even though we had it
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