NEAR MONEY Meaning and
Definition
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Near money refers to assets that are highly liquid and can be easily converted into cash. These assets are not considered actual currency but are very close substitutes and can serve as a store of value. They possess characteristics that make them widely acceptable and easily exchangeable for goods and services. Near money tends to be less liquid than actual money or cash, but more liquid than other types of assets.
Examples of near money include short-term government securities such as Treasury bills, certificates of deposit (CDs), money market funds, and other highly liquid financial instruments. These assets are often used as alternatives to holding cash as they offer a higher yield or return compared to keeping funds in a regular bank account.
Near money plays a crucial role in the economy and financial markets. It provides individuals and businesses with flexibility and convenience by allowing them to easily access cash when needed, while also earning some return on their investments. Additionally, it helps to facilitate economic transactions by providing a stable and efficient medium of exchange. Central banks and policymakers closely monitor near money as it influences the money supply, interest rates, and overall economic stability.
Common Misspellings for NEAR MONEY
- bear money
- mear money
- jear money
- hear money
- nwar money
- nsar money
- ndar money
- nrar money
- n4ar money
- n3ar money
- nezr money
- nesr money
- newr money
- neqr money
- neae money
- nead money
- neaf money
- neat money
- nea5 money
- nea4 money
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