discuss the role of near money in an economey
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Near Money.
Near money is a concept closely related to liquidity. Liquidity refers to how fast the money can perform the economic actions like buying, selling, or paying debt, meeting immediate wants and needs. There should not be loss of time and value in perming the economic functions.
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Near money means non-cash assets that are very liquid but cannot be used directly for transactions. When determining the current money supply, economists and central banks may utilize near money. The money supply can tell us about the health of the economy.
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