What is close to money?
Near Money is a term used to indicate highly liquid assets. These are cashless assets that can be quickly converted to cash with small or no value loss. They are also often referred to as quasi-fencing. In assessing the country's money supply, which can play a role in the health of its economy, it is sometimes possible to consider when assessing the country's money supply. This is because what is calculated as "close" depends on how much freedom is permitted for delay or cost of transferring the asset to cash. Probably the only asset that can be converted without time or cost penalties is the money in the immediate access account. The shares of foreign currencies follow closely, because it is usually possible to convert them to the home currency almost immediately, even if it usually has a transaction fee.
Assets that almost always classified as near money include government or state securities such as accounty; This is because they are very reliable and are almost guaranteed to find the buyer. Examples are money money, because although they are based on debt securities, they are designed to be very liquid. The money embedded in the bank for a fixed period may also be counted, although it can be limited to deposits that are set to end extremely. In different countries, these deposits are called deposit certificates, bonds, time contribution and deadlines.
other types of assets that are virtually liquid are not classified as close to money. The most common example is the company's shares. Although most shares can be converted into cash without much difficulty, this is not guaranteed, because shares can and go through a period where there are few future buyers. It is also difficult to put a long -term value per stock, as its price may vary over time. This is, unlike the industry of types near money where the value is either fixed or significantly notchanges.
near money can have a significant impact on the economy, secondly only on other cash. This is partly because it can be easily converted to cash to increase the cash supply. Another reason is that savings held in highly liquid form are much more likely to be spent than that are tied in long -term savings that access or fine can be accessible.