GCEEconomicsMoney and Banking2020

Which of the following best describes 'near money'?

ACurrency notes and coins held by the public
BAssets that can be quickly converted to cash without significant loss of valueCORRECT
CMoney deposited in current accounts at commercial banks
DForeign currencies held by the Central Bank
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Near money refers to highly liquid assets that are not themselves money but can be quickly and easily converted into cash with little or no loss of value. Examples include treasury bills, savings deposits, and short-term government securities. Currency notes and coins are actual money, not near money.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Economics questions

GCE Economics has thousands more questions like this — with Worked answers on every one.

Start practicing free →See all Economics questions