What is near-money?

Quasi-money is a type of financial asset similar to normal money, but with the main characteristic that it has a lower liquidity That this. Normally, it represents in certain periods of time and the money can be transformed since it can be easily redeemed in cash.

The main purpose of quasi-money is that with ease and agility it can be converted into money current and be able to make transactions with it. The risk attributable to this type of financial asset is nil or scarce, becoming a reserve of value or exchange instrument in certain situations.

However, we have to point out that quasi-money itself is a mode of payment that is not very widespread and with little acceptance, so it is difficult if we want to depend exclusively on it. Some examples in which quasi-money can be used are: savings accounts, investment certificates, bills of exchange, promissory notes, etc.

Quasi-money is found in different ways in the economy, either as an instrument of exchange or as a store of value. However, this type of asset is not taken as money, but as a monetary aggregate or expanded money supply. The difference from normal money is that it has a function of means of payment.

As for the main advantage of the use of quasi-money, it is that interest is paid, since it has returns and maturity terms for this type of money. However, whenever we want, we can exchange this financial asset for cash if it is sold on the stock market, without the need to alter its value. It is for this reason that this type of financial asset is known as "almost money" or quasi-money.

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