Near money is a term in financial economics, describing highly liquid non-cash assets that are easily convertible into cash. Savings accounts, deposit certificates (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills are examples of near-money assets.
Are Cheques near money?
This means that currency which we hold is cent percent liquid. In the same way, the demand deposits such as cheques, demand drafts etc. can be encashed immediately and so they are also liquid assets. These are highly liquid assets that can easily be converted into cash.
Is debit card near money?
While credit cards can serve as a means of purchase or provide access to a cash advance, but they would not be considered near money. The primary reason is that credit cards – while capable of providing perceived liquidity – are a revolving liability or debt.
Is bill of exchange near money?
An asset that is immediately transferable and may be used to settle some but not all debts, although it is not as liquid as banknotes and coins. Bills of exchange are examples of near money.
Is an example of near money?
Examples of near money assets include savings accounts, certificates of deposit (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills (T-bills). In general, near money assets included in near money analysis will vary depending on the type of analysis.
What is the most common near money?
Assets which are nearly always classed as near money include government or treasury securities such as bills; this is because they are very reliable and are almost guaranteed to find a buyer.
What is meaning of quasi money?
The term quasi money refers to assets which can be easily converted to cash because they are in high demand and are issued by entities with excellent creditworthiness. Examples of quasi money include gold certificates, bonds issued by creditworthy governments and certificates of deposit issued by creditworthy banks.
What is the optional money?
Optional Money is non-legal tender but is generally accepted by the people in final payments. It consists of credit instruments like bills of exchange, cheques, handiest, etc., which do not enjoy any statutory backing. The acceptance of optional money depends upon the choice of a person.
