The Fed classifies different types of money depending on their:
A) liquidity.
B) resale value.
C) commodity backing.
D) intrinsic value.

Question

Quizplus · Accepted Answer

The Fed classifies different types of money based on their liquidity or how easy they can be converted into cash. This is important for maintaining stability in the financial system and facilitating transactions. The more liquid a type of money is, the more easily it can be used for transactions and stored as a store of value.

The Fed Classifies Different Types of Money Depending on Their