Quick Answer: Which Of The Following Is An Example Of Near Money Quizlet?

What is the meaning of barter?

Barter is an act of trading goods or services between two or more parties without the use of money (or a monetary medium, such as a credit card).

In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party..

What are the types of near money?

Savings accounts, deposit certificates (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills are examples of near-money assets. Generally speaking, near-money assets included in the near-money analysis can differ according to the type of analysis.

What is bad money and good money?

Bad money is then the currency that is considered to have equal or less intrinsic value compared to its face value. Meanwhile, good money is currency that is believed to have greater intrinsic value or more potential for greater value than its face value.

Which is an example of barter?

An example of barter is when the people within a community exchange goods and services so that money needn’t be used. An example of barter is bread provided in exchange for butter. To trade by exchanging goods or services without using money. … The exchange of goods or services without the use of money.

Which of the following assets is the most liquid?

Cash on hand is considered the most liquid type of liquid asset since it is cash itself.

Which asset is the most liquid?

CashCash on hand is the most liquid type of asset, followed by funds you can withdraw from your bank accounts. No conversion is necessary—if your business needs a cash infusion, you can access your funds right away. There are many sources of accessible, flexible capital.

What is high power money?

High-powered money is the sum of commercial bank reserves and currency (notes and coins) held by the Public. High-powered money is the base for the expansion of Bank deposits and creation of money supply.

Which of the following is an example of near money?

Examples of near money are as follows: Savings accounts. Money market funds. Bank time deposits (certificates of deposit)

Which of the following does near money include?

Examples of near money assets include savings accounts, certificates of deposit (CDs), foreign currencies, money market accounts, marketable securities, and Treasury bills.

What are the 3 types of money?

Key TakeawaysMoney comes in three forms: commodity money, fiat money, and fiduciary money. … Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.Money functions as a medium of exchange, a unit of account, and a store of value.

How is money classified?

Some of the major leads under which money has been classified are as follows: (i) Full bodied Money (ii) Representative Full-bodied Money and (iii) Credit Money. Money can be classified on the basis of relationship between the value of money as money and the value of money as a commodity. (iii) Credit money.

What are the 4 types of money?

Four Types of MoneyCommodity money.Receipt money.Fractional money.Fiat money.

What occurs during a bank run quizlet?

Depositors leave their deposits in the bank. … Depositors withdraw all of their deposits from the bank. Bank Run. When all or many depositors simultaneously demand their deposited funds.

Which asset is an example of money?

Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. Unlike land, property, commodities, or other tangible physical assets, financial assets do not necessarily have inherent physical worth or even a physical form.

Is credit card a near money?

Are Credit Cards Near Money? While credit cards can serve as a means of purchase or provide access to a cash advance, but they would not be considered near money. The primary reason is that credit cards – while capable of providing perceived liquidity – are a revolving liability or debt.

Which is an example of barter quizlet?

Which is an example of a barter system? Instead of paying rent, you clean the house for the owner. Instead of paying cash for a computer, you use a credit card. Instead of paying the full amount for a car, you pay 10 percent in cash and pay for the rest in monthly installments.

What assets are considered money quizlet?

The narrower definition of money considers only the most liquid assets to be money: currency in circulation, checkable bank deposits, and traveler’s checks.

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. … These are highly liquid assets that can easily be converted into cash.