The rise of near money complicates monetary policy because:
A)it can be used both as a medium of exchange and as a store of value.
B)interest may be earned on checking accounts.
C)the velocity of any one definition of money becomes unstable.
D)holders of mutual funds may write checks on their accounts.

Question

Quizplus · Accepted Answer

The rise of near money complicates monetary policy because it makes the velocity of any one definition of money unstable, as near money can quickly be converted into cash or checking deposits, affecting money supply measurements.

The Rise of near Money Complicates Monetary Policy Because