BANKING AFFAIRS

Detailed explanation-1: -’Near Money’ refers to non-cash assets which are highly liquid, such as bank deposits (saving deposits, current deposits etc), treasury bills, money markets, widely traded foreign currencies etc.

Detailed explanation-2: -Examples of near money assets include savings accounts, certificates of deposit (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills (T-bills). In general, near money assets included in near money analysis will vary depending on the type of analysis.

Detailed explanation-3: -T-bills, Equity shares of a company, Bill of exchange and Debentures are all considered as near money.

Detailed explanation-4: -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.

Detailed explanation-5: -A few examples of near money are treasury bills, bank deposits, bonds, and money markets, etc. Cash like paper notes and coins are not near money.