Economists use different definitions of money because
A) there are differences in the frequency with which depositors use their accounts.
B) deposits can be domestic or international.
C) deposits may be held at banks or savings and loans.
D) it is not always clear which assets are used primarily as money.

Question

Quizplus · Accepted Answer

Economists use different definitions of money because there is no consensus on what assets should be considered as money. For example, some definitions of money include only currency and demand deposits, while others include other types of deposits and investments that are highly liquid and easily convertible to cash. Therefore, the choice of definition depends on the purpose of the analysis and the specific properties that are most relevant to the question at hand.

Economists Use Different Definitions of Money Because