Money is considered the most liquid of all assets because it is readily convertible into other assets. This means that it can be easily and quickly exchanged for goods, services, or other forms of assets. There are several reasons why money is highly liquid:

1. **Portability**: Money is highly portable, which means it can be easily carried and transported from one place to another. Unlike other assets such as real estate or vehicles, which may require physical transport or legal processes to transfer ownership, money can be easily carried in the form of cash or transferred electronically.

2. **Store of value**: Money serves as a store of value, meaning it retains its worth over time. Unlike perishable goods or assets that depreciate in value, money can be stored for extended periods without losing its value. This enhances its liquidity as it can be readily accessed whenever needed.

3. **Divisibility**: Money is highly divisible. It can be easily broken down into smaller units to facilitate transactions of varying sizes. For example, a dollar bill can be divided into cents, allowing for precise and flexible pricing. This divisibility enhances the liquidity of money as it can be used for transactions of any magnitude.

4. **Acceptability**: Money is generally accepted as a medium of exchange in most economies. It is recognized and valued by individuals and businesses alike. This widespread acceptance makes money highly liquid as it can be readily exchanged for goods, services, or other assets without the need for negotiation or bartering.

5. **Convertibility**: Money can be easily converted into other forms of assets such as stocks, bonds, or commodities. This convertibility allows individuals and businesses to diversify their portfolios and allocate their wealth into different asset classes as per their preferences and investment goals. The ability to convert money into various assets increases its liquidity as it provides options for individuals to quickly and easily adjust their asset holdings.

In conclusion, money is the most liquid of all assets because it is readily convertible into other assets. Its portability, store of value, divisibility, acceptability, and convertibility make it highly liquid and universally recognized as a medium of exchange.