What Is Meant By Near Money?

What are the 4 types of money?

The four most relevant types of money are commodity money, fiat money, fiduciary money, and commercial bank money.

Commodity money relies on intrinsically valuable commodities that act as a medium of exchange.

Fiat money, on the other hand, gets its value from a government order..

Which is near money?

Near money is a financial economics term describing non-cash assets that are highly liquid and easily converted to cash. … Examples of near money assets include savings accounts, certificates of deposit (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills.

Is Bond Near money?

Near money or quasi-money consists of highly liquid assets which are not cash but can easily be converted into cash. Examples of near money are as follows: … Government treasury securities (such as T-bills) Bonds near their redemption date.

Is gold near money?

That is why Land and buildings are not termed at money or near money. At the same times, assets such as Gold and silver are more liquid and sometimes called near money.

Are credit cards 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.

What are types of money?

There are 4 major types of money: Commodity Money. Fiat Money. Fiduciary Money. Commercial Bank Money.

What is E money?

Electronic money (e-money) is broadly defined as an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer. The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions.

Is debit card considered money?

Both credit cards and debit cards can be used to purchase goods and services, but only one is considered money. A debit card is considered money…

What form of money is most liquid?

CashCash is the most liquid form of money. Ideally, the fact that cash can easily be converted to assets is the reason behind its liquidity.