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
Correct Answer: D. a financial asset that is convertible to cash
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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