ease and speed with which an asset can be converted into a medium of exchange. Liquidity is highly desirable. Money is the most liquid asset of all because it is the medium of exchange; it does not have to be converted into anything else in order to make purchases. Other assets involve transaction costs when they are converted into money. Different Types of Money Now, let’s clarify the meaning of some words that are related to“ money ”. Please look at the following words. These are all different forms of money, Money, Cash, Currency, Reserves, Salary, Wages, e, Loan, Pension, Fund, Capital, Instalments, Debt, Subsidy, rebate, Deposit, Aid. Stake. What are the exact meaning of these words in English? Now, let’s do some exercises, after that you will have a very clear idea of what they are.
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