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The term 'Near money' is best described as

Economics
JAMB 2003

The term 'Near money' is best described as

  • A. a financial instrument that is readily convertible to cash
  • B. government financial instrument that is convertible to cash
  • C. time deposits with low interest rates
  • D. a financial asset that is convertible to cash
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Correct Answer: Option D
Explanation

Near money refers to non-cash assets that are highly liquid and easily converted to cash. They are sometimes referred to as quasi-money or cash equivalents. Examples of near money are: Savings accounts held in commercial banks


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