Question

There are some financial assets which are called ‘near money’. Can you identify such financial assets?

Answer 1

Near money refers to financial assets that cannot be directly used to purchase goods and services, but can be quickly converted into money, sometimes with a slight loss in value. These assets are less liquid than actual money, such as coins, currency notes, or demand deposits, but they still hold value and can be changed into money when needed. They are not considered real or actual money. Common examples of near money include time deposits in banks, treasury bills, bonds, shares, bills of exchange, and credit cards.