What is the difference between cash and money?

Cash and money are entirely different things in terms of liquidity. Cash is considered as the most liquid asset. On the other hand, since money is too general because it can take many forms (i.e., currency in circulation, bank notes, coins, certificates of deposits, cheques, or other forms of payments) is not as liquid as cash. Simply, there are many forms of money circulating in an economy that comprises the money supply; but not all those forms are highly liquid as cash.

Note that liquidity is the availability of cash when needed (i.e., prompt and instant payment).

Example:

Cash is a form of money. If you pay cash you definitely use bills or coins. It is ALL money and you need to specifically indicate CASH in contrast to cheque, credit card, deposits, etc. So you are highly liquid.

Money is the general word for the coins, notes, deposits, credit cards, cheques, etc.

Hope this helps.

First answer by Quantcrunch. Last edit by Danielabertson. Contributor trust: 0 [recommend contributor]. Question popularity: 1 [recommend question].