Which of the following is/are example(s) of ‘Near Money’? 1. Treasury Bill 2. Credit Card 3. Savings accounts and small time deposits 4. Retail money market mutual funds Select the correct answer using the code given below:

CDS 2016 PYQ with Answer — Which of the following is/are example(s) of ‘Near Money’? 1. Treasury…

2016 · Q107

Which of the following is/are example(s) of ‘Near Money’?

1Treasury Bill
2Credit Card
3Savings accounts and small time deposits
4Retail money market mutual funds

Select the correct answer using the code given below:

General KnowledgeIndian Economy

A1 only
B2 only
C1, 2 and 3
D1, 3 and 4

Explanation

Near money comprises highly liquid assets that are not themselves a medium of exchange: Treasury Bills (1), savings accounts and small time deposits (3) and retail money market mutual funds (4) all qualify. A credit card (2) is not an asset at all but a payment/credit facility, so it is not near money. Items 1, 3 and 4 are examples of near money, option (D).