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Economics (AS & A Level) · May / June 2022 · Paper 13 · Question 1

9708Money and banking

Which statement about money is correct?

  1. ADeflation reduces the internal purchasing power of money.
  2. BMost financial assets are more liquid than physical assets.
  3. CWhen money acts as a medium of exchange, it requires a double coincidence of wants.
  4. DWhen money acts as a store of value, it must be unlimited in supply.

As printed in the paper

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Correct answer: B. Most financial assets are more liquid than physical assets.

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