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Quasi-money
Near money or quasi-money consists of highly liquid assets which are not cash but can easily be converted into cash. Examples of near money include: * Savings accounts * Money market funds * Bank time deposits (certificates of deposit) * Government treasury securities (such as T-bills) * Bonds near their redemption date * Foreign currencies, especially widely traded ones such as the US dollar, euro or yen. Near money is not included in narrowly defined versions of the money supply, but broader versions include some types of near money. History Over the past three centuries what has been accepted by the public as money has been expanded from gold and silver coins to include first bank notes and then bank deposits subject to transfer by check (cheque). Until recently, most economists would have agreed that money stopped at that point. No such agreement exists today, and the definition of money appropriate to present circumstances is debated. Since the 18th century, economist ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Money Supply
In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circulation (i.e. physical cash) and demand deposits (depositors' easily accessed assets on the books of financial institutions). The central bank of a country may use a definition of what constitutes legal tender for its purposes. Money supply data is recorded and published, usually by a government agency or the central bank of the country. Public and private sector analysts monitor changes in the money supply because of the belief that such changes affect the price levels of securities, inflation, the exchange rates, and the business cycle. The relationship between money and prices has historically been associated with the quantity theory of money. There is some empirical evidence of a direct relationship between the growth of the money su ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
