Personally I use Callibri. It was the font our essays in college had to be written in so I stuck with it.
You can type your manuscript in any font that works for you to read and edit. When you submit it for representation (to an agent) or for publication (to an editor), their submission guidelines will tell you what font and format to use. Usually it's either 12 pt. Times New Roman or Courier, double spaced, with one inch margins. With word processors, it's not a problem to change the font and size and spacing, etc. So write in the font that works best for you.
Courier (or Courier New) is the most widely preferred font for manuscript. It's a serif font, and it's a fixed-pitch font, both of which make it easier to spot mistakes. 12 points is the most commonly preferred font size.
I vary on mine. I periodically change the font i write in because i get bored of the same old style after awhile.
courier new 12 pt is the most universally acceptable font, since tnr is too tiny and cramped for reading all day, every day... but the decision must rest on what is specified in each agent's/publisher's submission guidelines, if they want something other than that...
To be fair 12pt size works when printed, but not so restrictive when onscreen as you can zoom in/out or also different screen resolutions can display items lager than expected.
Sounds good to me. I'm using 12pt constantina because it's easy for me to see, but I guess if I decide to send it anywhere I'll just change to courier.
Obviously, the question of what editors and publishers like has been answered. But for me, writing at home, it depends on the story. For most things, Book Antiqua is what I use. For stories with a more old-fashioned setting, I use Traditional Arabic. For my comics, usually Anime Ace or Mighty Zeo. Titles, I usually type in Copperplate.
Hell, i write in Abaddon then change it to Palatino Linotype when i send it to my beta reader, only cause he hasnt got it... ive not worried about proper manuscript form just yet, just getting it down.... and normally in 16pt cause abaddon can be quite difficult to read