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JAMB Economics 2003 Question 20

Question 20

Money and Inflation

The term 'Near money' is best described as

  1. A.a financial instrument that is readily convertible to cash
  2. B.government financial instrument that is convertible to cash
  3. C.time deposits with low interest rates
  4. D.a financial asset that is convertible to cash
Show the answer and explanation

Answer: A (a financial instrument that is readily convertible to cash)

Explanation

Near money is an asset (such as a savings deposit or treasury bill) that is not money itself but can quickly be turned into cash.