Quote:
Originally Posted by tw
...How do money relate to liquidity?. What is the relationship between currency and liquidity?
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Money often doesn't support liquidity. I'll probably not break off a piece of my house and give it you for payment of the electric bill.
Currency would more likely support liquidity. Currency being money converted to a more payment friendly form.
Credit with my house as collateral might be a good solution. Or a bank account that holds my salary without credit or collateral involved.
Am I getting close?
What are your thoughts?