Final answer:
The statement about having a lot of money in one's wallet aligns with the traditional definition of money due to cash's liquidity. Checks and credit cards are also related to the concept of money because of their role in transactions, but they differ in liquidity and operation.
Step-by-step explanation:
The statement "He had a lot of money in his wallet" is consistent with the definition of money as provided in the course. In economics, money is defined not only by its physical form but also by its functions and liquidity. Liquidity refers to the ease and speed with which a financial asset can be used to purchase goods and services. Cash is a highly liquid form of money, as it can be directly used for transactions without any additional steps.
However, when discussing checks or credit cards, the concept of money extends beyond physical currency. Although checks are less liquid than cash because they require a bank to process them, they are still considered a form of money. Credit cards, on the other hand, represent a means to access money (typically from a credit line) and defer payment. Thus, while they are a means of facilitating transactions, they are not money themselves but rather a tool to spend money from one's account or borrowed funds.
Therefore, various forms of financial assets fall along a spectrum of liquidity, which impacts their usefulness as money in different situations. Cash in one's wallet is readily available and can instantly be used for exchanges, fitting the traditional definition of money perfectly.