Understanding Cash as a Financial Asset Quiz

A commercial instrument that is payable in money and acceptable by the bank for deposit and immediate credit

The standard medium of exchange

Currency and coins which are in circulation and legal tender (correct)

A financial asset

To provide credit for commercial instruments

To act as a financial asset

To facilitate electronic transactions

To serve as a standard medium of exchange (correct)

Its electronic transferability

Its physical presence as currency and coins (correct)

Its ability to earn interest in a bank account

Its potential for appreciation in value over time

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