Some nonmonetary assets are called near money because they:

Question

Quizplus · Accepted Answer

Near money refers to nonmonetary assets that are highly liquid and can be easily converted into cash with minimal loss of value. These assets are not fully considered as money because they may not be widely accepted as payment, but they are often used as a store of value and for short-term investment purposes. Near money earns interest rates that are similar to those of money market accounts and are highly liquid, which makes them a viable alternative to cash. Therefore, option C is correct as near money has high liquidity, similar to money, making it a viable alternative. Options A, B, and D are incorrect as they do not capture the essence of near money.

Some Nonmonetary Assets Are Called near Money Because They