Near-Money financial definition of Near-Money
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Related to Near-Money: fiat 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
Karuppan, "On Measuring the Nearness of Near-Moneys
Pearce, (1976), 'The Substitutability of Money and Near-Moneys
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.