What is near money assets?

What is near money assets?

Near money, sometimes referred to as quasi-money or cash equivalents, is a financial economics term describing non-cash assets that are highly liquid and easily converted to cash.

Is near cash an asset?

Near money needs some time to convert to cash. In order to meet immediate obligations, individuals and businesses must have cash available. Near money is not actually money but are assets that can easily be converted into cash.

What is a Nonliquid asset?

Non liquid assets (also known as illiquid assets or fixed assets) are a category of assets that aren’t easily converted into cash. Non-liquid assets typically must be sold and transferred in ownership to access their cash value, and finding an owner willing to pay market value can take weeks, months, or years.

What are the most liquid assets?

The most liquid assets are cash and securities that can immediately be transacted for cash. Companies can also look to assets with a cash conversion expectation of one year or less as liquid. Collectively, these assets are known as a company’s current assets.

Which of following is near money?

Near money refers to the non-cash assets which can be readily converted into cash due to there high liquidity nature. For example: bill of exchange, savings bond and gilt edged securities are near money as they are liquid assets which can be easily converted into cash. Was this answer helpful?

Which of following are examples of near money?

Near Money: It is a term used to describe highly liquid assets which are not cash but can easily be converted into cash….

• Treasury Bill.
• Credit Card.
• Savings accounts and small time deposits.
• Retail money market mutual funds.

Is Cheque a near money?

This means that currency which we hold is cent percent liquid. In the same way, the demand deposits such as cheques, demand drafts etc. can be encashed immediately and so they are also liquid assets.

What are illiquid assets?

Illiquid assets are the opposite. These are assets that cannot be quickly sold, that are difficult to sell or that cannot be sold without incurring a significant loss in value. The most common example of an illiquid asset is real estate.

What are my liquid assets?

Common liquid assets include:

• Cash. Cash is the ultimate liquid asset.
• Treasury bills and treasury bonds.
• Certificates of deposit.
• Bonds.
• Stocks.
• Exchange traded funds (ETFs).
• Mutual funds.
• Money market funds.

Is savings bond near money?

For example: bill of exchange, savings bond and gilt edged securities are near money as they are liquid assets which can be easily converted into cash.