Economy, asked by PragyaTbia, 1 year ago

Define the term 'near money'.

Answers

Answered by simran768
0
Hey....
Here is the answer......

Near money is an economics term describing non-cash assets that are highly liquid, such as bank deposits, certificates of deposit (CDs) and Treasury Bills. Central banks, economists, and statisticians may utilize near money when determining the current M2 money supply. Near money refers to assets that can be quickly converted into cash. Near money is also called quasi-money.

Answered by Anonymous
0

Answer:

Near money are the highly liquid assets that are not cash, but can be easily be into cash.

  • Examples of near money are the savings accounts , the money market funds , certificates of deposit , government treasury securities like the T-bills, the bonds close to their redemption date and the foreign currencies, which are widely traded such as the US dollar, or euro.
  • Near money is also referred to as the equivalent of quasi-money or cash. To determine liquidity levels, the proximity of near-moneys is important.
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