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The term 'Near money' is best described as

...

The term 'Near money' is best described as

A.

A financial instrument that is readily convertible to cash

B.

Government financial instrument that is convertible to cash

C.

Time deposits with low interest rates

D.

A financial asset that is convertible to cash

Correct answer is D

Near money refers to non-cash assets that are highly liquid and easily converted to cash. They are sometimes referred to as quasi-money or cash equivalents. Examples of near money are: Savings accounts held in commercial banks