Which of the following characterize near-monies?

Multiple select question.

Do not function directly as a medium of exchange

Cannot be readily converted into currency

Highly liquid

Highly illiquid

Can be readily converted into checkable deposits

1 answer

Near-monies are financial assets that can be easily converted into cash or checking deposits but do not function directly as a medium of exchange. Based on this definition, the characteristics of near-monies from your list would be:

  • Do not function directly as a medium of exchange
  • Can be readily converted into checkable deposits

The other options, such as "Cannot be readily converted into currency" and "Highly illiquid," do not characterize near-monies, as they are generally liquid and can be converted into cash or checking deposits.