Final answer:
An economist would define money as cash or any other financial asset that can be quickly turned into a medium of exchange through purchase or settlement of debt. This includes cash, checks, and credit cards, which are all measured in terms of liquidity — how easily they can be used for transactions.
Step-by-step explanation:
What most closely fits an economist's definition of "money"? An economist's definition of money includes not only cash but also other forms of financial assets that can be used to make payments. These include checking accounts, credit cards, and more, all classified under measures like M0, M1, M2, and M3, depending on their liquidity. Liquidity is a crucial concept here; it indicates how quickly and easily a financial asset can be turned into a medium of exchange. Cash, being the most liquid form, can be used directly to purchase goods and services, like a hamburger at lunchtime.
Other forms of money, such as the balance in a savings account, also fit the definition but are less liquid. They require additional steps, such as withdrawing the cash, to be used for transactions. Checks and credit cards represent promises to pay and are considered money because they can readily be used to settle debts and purchase items, thereby fulfilling the functions of being a medium of exchange, a unit of account, and a store of value.