near money

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Related to Near-Money: fiat money

Near money

Assets that are easily convertible into cash, such as money market accounts and bank deposits.

Near Money

A highly liquid asset that may easily be converted to cash. Examples include savings accounts, bonds (especially near their maturities), and money markets. Central banks and statisticians sometimes, but not always, use near money when computing the money supply. See also: M2.

near money

Assets that can be converted quickly and easily into cash with virtually no loss in value. Examples of near money are savings account balances and Treasury bills.

near money

any easily saleable (liquid) ASSET that performs the function of MONEY as a STORE OF VALUE but not that of a universally acceptable MEDIUM OF EXCHANGE. CURRENCY (notes and coins) serves as a store of value and, being the most liquid of all assets, is universally accepted as a means of PAYMENT. However, building society deposits, National Savings deposits and Treasury bills are, respectively, less and less readily acceptable in their present form for making payments, and thus function as ‘near money’. See MONEY-SUPPLY DEFINITIONS.
References in periodicals archive ?
In other words, money market is the name given to the various firms and institutions which deal in various grades of near-moneys (Shekhar and Shekhar, 1999).
6) Chetty's work was motivated by the Gurley/Shaw hypothesis and the general lack of agreement in the empiricial findings of Feige (1964) and others about the degree of substitutability between money and near-money assets.
The demand function typically includes the rates of return on one of more near-money assets, plus an income or wealth measure as an explanatory variable.
Things are very different when the unit of account is a fiat unit whose value depends on the interplay of supply and demand for a base money and for the other kinds of money and the near-moneys that are pyramided onto it.