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
jamb 2003economics

The correct answer is D. a financial asset that is convertible to cash

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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