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deposits in savings accounts and money market mutual funds

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9y ago

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Which of the following does near money include?

deposits in savings accounts and money market mutual funds.


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money is anything which is accepted as a medium of exchange. E. g. Hard cash say Rs 100 note. Near money is not money but very near to money say Bill of exchange, Deposit certificate.


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Does M1 include savings deposit?

M1 includes the most liquid forms of money in an economy, primarily cash and checking account deposits. It does not include savings deposits, as these are considered less liquid. Instead, savings deposits fall under M2, which encompasses M1 plus savings accounts, time deposits, and other near-money assets.


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