Answer
Money is distinct from other assets in the economy due to three functions. Money serves as a unit of account, a medium of exchange and store of value. Money is also distinct from other assets because it is highly liquid. Other assets in the economy do not have all three of these characteristics.
Work Step by Step
Money as a medium of exchange means that it can be used to make transactions and used to purchase goods and services.
Money as a unit of account means that it can be used to record prices and other economic values, while also allowing for easy comparison between objects.
Money as a store of value means that it can be used to hold wealth.
