he ease with which an asset can be O a traded for another as

he ease with which an asset can be O a. traded for another asset determines whether or not that asset is a unit of account. O b. transported from one place to another determines whether or not that asset could serve as fiat money c. converted into a store of value determines the liquidity of that asset. d. converted into the economy\'s medium of exchange determines the liquidity of that asset.

Solution

An unit of account is something that can be used to value goods and services . Any money that is declared legal tender is fiat money . Liquidity is defined as the ease with which an asset can be converted quickly into cash (or medium of exchange ) with little or no loss of purchasing power. Money is said to be perfectly liquid, whereas other assets have a lesser degree of liquidity .

Answer : D . converted into the economy\'s medium of exchange determines the liquidity of that asset .