New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which among the following assets are considered as

    'Near Money'?
    A Bonds Correct Answer Incorrect Answer
    B T-Bills Correct Answer Incorrect Answer
    C Traveler’s cheques Correct Answer Incorrect Answer
    D Time deposit Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Near money refers to assets that can be quickly converted into cash. They are also called quasi-money. Examples of near money are:   - Bonds near their redemption date   - Government treasury securities (such as T-bills)   - Traveler’s cheques   - Bank time deposits (certificates of deposit)   - Savings accounts   - Money funds   - Foreign currencies, especially widely traded ones such as the US dollar, euro or yen etc.

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