Which of the following are certain highly liquid financial assets that do not function directly or fully as a medium of exchange but can be readily converted into currency?

Multiple choice question.

Capital assets

Checkable deposits

Paper money

Near monies

1 answer

The correct answer is Near monies.

Near monies are highly liquid financial assets that can be easily converted into cash but do not serve as a direct medium of exchange. Examples include savings accounts, time deposits, and other forms of money that are not cash but can be quickly converted to cash.

Checkable deposits and paper money do function as mediums of exchange, while capital assets are typically not liquid and involve longer-term investments.