“Assets that are easily convertible into cash, such as money market accounts and bank deposits. Converting near-money involves time, and sometimes a fee (exchanging currency, or paying a penalty for taking your money out before the agreed date).Īccording to the Nasdaq Business Glossary, near money is: Liquidity – money is 100% liquid, near money is not. Making Transactions – we use money directly for making transactions, while near money is an indirect medium of exchange – we need to convert it into money first before it can be used for transactions. M2 a broader definition of the US money supply includes near monies. In fact, near money’s own value is expressed in terms of money. Definition any commodity or token that is generally accepted as a means of. Prices in shops, for example, are expressed in terms of money. Unit of Account – money is a unit or account, it is a common measure of value. Some differences between money and near money Traditionally, elopements were considered spur-of-the-moment and unplanned events involving an element of secrecy. Today however, there is no clear-cut agreement on the definition of what constitutes money.Īmong assets of lower liquidity, as long as whatever the holder owns can be turned into cash almost immediately, it is considered as near money. The definition of an elopement has evolved in the last five years especially as couples are increasingly personalizing every aspect of their lives. Until recently, the majority of economists would agree that money stopped at that point. Monie Definition & Meaning - Merriam-Webster Entries Near Show more Save Word monie monie mni chiefly Scottish variant of many Love words You must there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary. Since then, bank notes came on the scene, and then bank deposits subject to transfer by check. Up to the 18th century, mainly gold and silver coins were accepted by the public as money. Bonds: specifically those near their redemption date.Bank time deposits: money deposits in a bank that cannot be withdrawn before a certain period (unless a penalty is paid).Money market funds: open-ended mutual funds that invest in short-term debt securities such as commercial paper and US Treasury bills.Foreign currencies: especially the most widely-traded ones such as the US dollar, euro, British pound or Japanese yen.Like ice is to water, near money is to money – it can be converted into the liquid form rapidly. The money supply can tell us about the health of the economy. When determining the current money supply, economists and central banks may utilize near money. Near money means non-cash assets that are very liquid but cannot be used directly for transactions. Near money is similar to cash equivalents. Near money, also known as quasi-money, refers to highly liquid assets that can rapidly be converted into cash such as short-term money market instruments and bank deposits.
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