Question
How might the limited acceptability of antiquemilitaryhardware in exchange, and difficulties in predicting their values from year to year, help to explain their low liquidity
How might the limited acceptability of antiquemilitaryhardware in exchange, and difficulties in predicting their values from year to year, help to explain their low liquidity relative to the most liquid asset, money? How might these characteristics affect the likelihood that these assets could function as forms of money?
Assets that people (seldom or regularly) exchange are typically among their more liquid assets. Most people (are or are not) willing to accept antique military hardware in exchange, so their liquidity is relatively (low or high) and their usefulness as a medium of exchange is (high or limited). Difficulties in predicting the value of antique military hardware would make them uncertain stores of purchasing power and thereby also (increase or reduce) their liquidity and usefulness as forms of money.
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