Near Money

Near money refers to assets that, although not officially designated as currency, have the inherent capacity to be quickly and smoothly converted into cash with minimal loss of value. These assets, known for their high liquidity, act as a store of value but are not actively used as a medium of exchange. Notable examples of near money assets encompass savings accounts, certificates of deposit, money market funds, treasury bills, and short-term government bonds. The concept of near money is crucial for assessing both the money supply and overall liquidity in an economy. It is also known as quasi-money or cash equivalents.