One reason that "near-monies" are important is because:
A)they simplify the definition of money and therefore the formulation of monetary policy.
B)they can be easily converted into money or vice versa, and thereby can influence the stability of the economy.
C)they do not reflect the level of consumer spending but they have a critical impact on saving and investment in the economy.
D)credit cards synchronize one's expenditures and income, thereby reducing the cash and chequeable deposits one must hold.

Question

Quizplus · Accepted Answer

Near-monies, such as savings accounts and money market funds, can be easily converted into money (cash or chequeable deposits) or vice versa. They are also relatively stable in value, which means they can influence the stability of the economy. For example, if people withdraw a large amount of money from their money market accounts and deposit it into chequeable deposits, there could be a strain on the banking system, leading to potential instability. Therefore, understanding and monitoring the use of near-monies is important in the management of the economy.

One Reason That "Near-Monies" Are Important Is Because