Refers to quasi money. Quasi-money is a special type of asset


Highly liquid financial instruments traded on the market and funds held in time savings bank accounts and deposits.

These include liquid financial assets that are not legal (official) means for settlements between market entities.

Quasi-money is a tool with rich history, which is a natural result of the evolution of money. Thanks to them, banknotes appeared, which were issued on the basis of bills issued by banks.

Features of quasi-money

The monetary essence of quasi-money has been significantly weakened, but this does not prevent it from being a means of repaying obligations and, in some cases, a tool for settlements between counterparties. Therefore, they are included in the money supply adjusted for the liquidity ratio.

In developed countries, quasi-money accounts for more than half of the volume of “broad” money, which makes it the main component of the state’s money supply.

The weakening of the monetary essence of quasi-money occurs in two cases:

  • The standard form of funds placed on time deposits partially loses the functions of money. This occurs due to a temporary loss of liquidity.
  • Non-standard forms receive monetary functions. For example, a bill of exchange can be used as a means of payment without being money in the generally accepted sense. Checks and some other financial instruments work similarly.

Impact on the economy

The use of quasi-money has a positive effect on the course of economic processes:
  • Increased market liquidity through the introduction of bills of exchange and other quasi-monetary payment instruments into circulation.
  • Reducing the mass of means of payment in circulation. Excess money is frozen in the form of long-term deposits, which helps improve market conditions.
  • Simplifying money supply management. Quasi-money provides a flexible and effective tool for controlling the circulation and supply of funds.

Mathematical expression

The monetary aggregate M2 (time deposits, checks, demand deposits and cash), which has the largest specific gravity, is formed from quasi-money. Mathematically, their amount is determined as the difference between the M2 aggregate and cash (M0).

A broader definition of quasi-money represents it as a monetary substitute - money that can be quickly converted into cash and performs the functions inherent in regular money. This category includes cash checks, time deposits, savings bonds, and government-issued securities. They are quantitatively defined as the difference between the aggregate M3 and M2, to which government loans, bonds, treasury bills and other securities are added.

Other meanings of the term

Russian economic literature interprets the term quasi-money ambiguously. Some scientists include time deposits and highly liquid financial assets among them. Other researchers consider quasi-money means of payment of foreign countries, which can be considered a liquid reliable asset, and financial instruments with a low degree of liquidity (bills, debt, offsets). However, taking into account low liquidity and slow circulation, they should be classified as money surrogates.

a) paper money

b) government bonds

c) shares of enterprises

d) metal money

d) “quasi-money”

35. All modern money in developed countries today belongs to ____________ money.

a) check

b) electronic

c) metal

d) commodity

d)symbolic

36. “Quasi-money” includes:

a) demand deposits

b) cash balances of non-financial organizations

V)time and savings deposits

d) cash on demand

37. The components of “quasi-money” are not:

a) cash

b) funds in urgent accounts

c) government bonds

d) savings deposits

38. Towards quasi-moneydo not include:

a) funds in urgent accounts

b) shares in investment funds

c) bank certificates of deposit

d) coins and banknotes

39. Monetary aggregates differ from each other:

a) according to the speed of circulation of money

b) by the number of monetary units

c) according to the degree of liquidity

d) by scope

40. The difference between monetary aggregates is determined by:

a) the opportunistic goals of the government

b) the difference in the functions they perform

c) different speeds of their circulation

d) varying degrees of liquidity

d) the different nature of demand for different components of the money supply

41. In Russia, the monetary aggregateM 0 represents:

a) cash in circulation

b) checkable demand deposits

c) time deposits

d) State Insurance funds

d) all types of deposits

42. Component of all kinds monetary aggregates (M 1 , M 2 , M 3 ) - This:

a) short-term government obligations

b) all types of deposits

c) cash

d) demand deposits

43. The most liquid asset is:

a) savings deposit

b) cash

c) government bond

d) stock in a car company

d) real estate

44. Which monetary aggregate best reflects the function of money as a medium of exchange:

A)M 1

b) M 2

V) M 3

45. Money supplyM 2 is equal to:

A) M 1 + cash in circulation

b) M 1 + certificates and government bonds

V)M 1 + savings deposits + small time deposits

G) M 1 + stocks and bonds

46. ​​Money supplyM 3 differs fromM 2 for the amount:

a) paper and metal cash

b) demand deposits

c) large time deposits

d) government bonds

47. Matching the difference between "M 3 " And "M 2 " can be represented as:

A) "M 2 + large time deposits” – (“cash in circulation + checkable deposits + small time deposits”)

b) " M 0 + M 1 + M 2 » – « M 0 + M 1 »

V) " M 0 + M 2 » – « M 0 + M 1 »

d) “cash + small time deposits” – “ M 1 + small time deposits"

48. Of the listed assets, the least liquid asset is:

a) real estate

b) cash

c) deposits and deposits

d) government securities

d) gold and jewelry

49. Money circulation is:

a) the movement of money in internal circulation in non-cash form when they perform their functions

b) the movement of money in internal circulation in cash when they perform their functions

c) a set of monetary units, price scale, banknotes and emission system

G)continuous movement of money, its functioning as a medium of exchange or means of payment

50. The simplest law of monetary circulation operates with the following values: average prices (R ), money supply (M ), velocity of money circulation (V ), commercial weight (Q ). The essence of this law is conveyed by the formula:

A) MQ = V.P.

b) MR = QV

V) M = VQ / R

G)M V = R Q

d) R = VQ / M

51. The author of the equation having the formMV = PQ , WhereM - the amount of money in circulation,V – speed of their circulation,R – weighted average price level,Q – the quantity of all goods and services is:

a) I. Fischer

b) A. Pigou

c) J.M. Keynes

d) M. Friedman

d) A. Marshall

52. Exchange equation by I. Fisher:

A) MQ = V.P.

b)M V = R Q

V) MR = QV

G) M = VQ / R

d) R = VQ / M

53. Based on the monetary circulation equation, the average price level can be calculated using the formula:

A) Q = MV / P

b) MV = RQ

V) Q = MR / V

G)R = M V / Q

d) R = VQ / M

54. The velocity of money circulation is:

a) the amount of issued bank loans divided by their number

b) price index adjusted to real gross domestic product

c) the average number of payments in which each currency unit during a year

d) the average number of non-cash money transfers per year per commercial bank

e) the amount received from the sale of goods or services during a given period of time

55. An increase in the velocity of money circulation, all other things being equal, according to the money circulation equation, will lead to ________________ prices.

a) decrease

b) unpredictable change

c) maintaining the previous level

G)increase

56. According to classical theory, the demand for money is mainly determined by factors such as:

a) transactional motive, precautionary motive, speculative motive

b) price level, level of real output, velocity of money

c) income level, interest rate, inflation expectations

d) precautionary motive, velocity of money circulation, demand for financial assets

57. Quantity theory of money:

a) determines that the state must maintain the growth rate of the money supply at the level of the average growth rate of real GDP

b) connects the demand for money mainly with real income

c) believes that the main factor in the demand for money is the interest rate

d) determines the demand for money using the equation of exchange

58. The quantity theory of money is not characterized by the statement that:

a) the demand for money depends on the velocity of money circulation

b) a change in the quantity of money affects the prices of all goods

c) the demand for money depends on the interest rate

d) the demand for money depends on real income

59. Keynesian theory of demand for money:

a) determines the demand for money using the equation of exchange

b) determines that the state must maintain the growth rate of the money supply at the level of the average growth rate of real GDP

c) connects the demand for money mainly with real income

d) believes that the demand for money is determined by the transactional motive, the precautionary motive, the speculative motive

60. Transactional motive:

a) keeping a certain amount of cash in case of unforeseen circumstances in the future

b) is based on the inverse relationship between the interest rate and the bond price

c) reflects people’s need for money to purchase necessary goods and services

d) the intention to save some reserve in order to take advantage of better knowledge than the market of what the future will bring

61. Transactional demand for money increases:

a) directly proportional to the nominalGDP

b) inversely proportional to the nominal GDP

c) with an additional issue of government bonds

d) when the amount of dividends on shares increases

62. The transaction demand for money is higher than:

a) higher interest rates

b) there is a greater likelihood of unforeseen situations in the future period

C) lower bond price levels

G)more purchases are made in the current period

63. The demand for money for transactions changes as follows:

a) increases as the interest rate increases

b) increases when the interest rate decreases

c) decreases as the nominal volume increases GDP

d) decreases with decreasing nominal volumeGDP

64. If nominalGDP has decreased, then:

a) transaction demand for money and general demand for money will remain unchanged

b) the transaction demand for money and the general demand for money will decrease

c) the transaction demand for money will increase, but the overall demand for money will decrease

d) transaction demand for money will decrease, but the overall demand for money will increase

e) transaction demand for money and general demand for money will increase

65. General demand curve for money:

a) is explained by the need to store money in the form of cash or funds in current accounts of commercial banks and other financial institutions

b) denotes the total amount of money that people and firms want to have for transactions and purchases of stocks and bonds at each possible interest rate

c) is determined mainly by the total monetary income of society and changes in direct proportion to the nominal value of GNP

d) is determined by the desire to receive income in the form of dividends or interest and changes inversely with the level of the interest rate

Deposit (bank) money is customer money recorded in regular current (checking) accounts in banking institutions, the national treasury.

Quasi-money. Their appearance is associated with the function of money as a means of payment, where money acts as an obligation that must be repaid after a specified period with real money. Quasi-money includes funds in time and savings deposit accounts, negotiable payment instruments (commercial and bank bills, checks and money orders), postal and telegraphic money orders, corporate securities (stocks, bonds, promissory notes, commercial paper), government securities (Treasury bills, government savings certificates) and insurance policies.

Like bank money, quasi-money is not legal tender, but can be used to pay off debt obligations. Compared to bank money, quasi-money is less liquid, although, like bank money, it performs separate monetary functions. Quasi-money cannot be used directly, quickly and without restrictions as a means of purchase and payment in monetary settlements with third parties for goods and services, for paying taxes and other obligatory payments. Quasi-money must first be converted by its owners into cash or sold in exchange for deposit money. The exception is negotiable settlement and payment instruments, postal and telegraphic money transfers, which operate in commercial and financial circulation and are accepted directly as payment for goods and services in exchange for legal tender.

Quasi-money has gone through the following main path of development: bill of exchange, accepted bill of exchange, banknote, check.

A promissory note is a written unconditional obligation of the debtor to pay a certain amount at a predetermined time and place. There are a difference between a promissory note and a bill of exchange, the difference between them is that the payer promissory note is the person who issued the bill, and according to the transfer - some third party. There are also financial bills, i.e. debt obligations arising from the lending of a certain amount of money. Their type is treasury bills. The latter is a short-term government security, the validity of which does not exceed 1 year (usually 3-6 months). The debtor here is the state. Friendly bills are non-cash bills not related to a real commercial transaction, which are issued by counterparties to each other in order to receive money by discounting such bills in banks.

The characteristic features of the bill are:

1. abstractness (the specific type of transaction is not indicated on the bill);

2. indisputability (mandatory payment of the debt up to the adoption of coercive measures after the notary draws up an act of protest);

3. negotiability (transfer of a bill of exchange as a means of payment to other persons with an endorsement on its back, which creates the possibility of mutual offset of bill obligations).

A banknote is a perpetual debt obligation secured by a guarantee from the central (issuing) bank of the country. Initially, banknotes had a gold guarantee and were redeemable for gold. Banknotes are issued in strictly defined denominations, and in essence they are national money throughout the state. IN Russian Federation the issuer of banknotes is central bank Russia.

A check is a monetary document of an established form containing an unconditional order from the account holder at a credit institution to pay the holder of the check a certain amount.

Checks first appeared in the 16th-17th centuries in Great Britain and Holland. There are several types of checks: settlement - a written order to the bank to make a cash payment from the drawer's account to the check holder's account (used for non-cash payments); cash - a check intended for receiving cash from credit institutions.

Cash checks are perceived as one of the forms of money due to the fact that they fully realize the function of cash as a means of payment. The basis for check circulation are deposits in banks. Thanks to the presence of such a deposit and the ability to withdraw and transfer money from it, checks acquire the ability to act as a payment instrument. Checks are used to pay for trade transactions, various payments, in the tourism business and other areas.

Electronic money appeared as a result of the development of scientific and technological progress. Since the mid-90s of the 20th century, electronic money began to be actively introduced into circulation by virtual private banks, electronic settlement and payment systems, and other commercial structures operating on the global Internet in real time, and became widespread in many countries of the world, primarily in Western Europe and the USA.

Electronic money has some specific features. First of all, electronic money does not have natural material carriers of use value and value. Electronic money can exist exclusively in the form of special electronic impulses, digital binary codes (files) that contain information about the characteristics of banknotes (serial number, date of issue, name of the issuer). Electronic money issued for circulation is stored on appropriate technical devices (in memory on the hard drive of a computer or microprocessor card) and is transferred using software and mathematics via various electronic communication channels (via local computer networks or global network Internet). The main difference between electronic payment systems and traditional ones is that the entire process from start to finish occurs in digital form, i.e. without clinking change or signing with a pen on a check. For this reason, electronic money is often also called virtual money, computer money or cyber money. Real money exists in the form of banknotes and coins, as well as in the form of accounting entries for the corresponding customer accounts in the case of bank money.

There are two main groups of electronic money - card-based and network-based.

Electronic money based on cards. The most commonly used are smart cards or chip cards. Essentially, smart cards are prepaid cards or “electronic wallets” with a built-in microprocessor that records the equivalent of the amount prepaid to the issuer of such cards. All of these cards are multi-purpose as they are used for payments with many companies. The operating mode of chip cards provides their owners with round-the-clock access to electronic money and at the same time allows smart card holders to periodically replenish their cash balances through bank branches, ATMs, by telephone or the Internet. A common feature of all projects related to the use of electronic money based on cards is the participation in them of international interbank associations, such as VISA, MasterCard and others.

Network-based electronic money. Network money is stored in computer memory and transferred through electronic communication channels, including the Internet, through various software. Electronic network money systems, as well as systems based on smart cards, still operate on the basis of prepayment for services provided. To make payments using network money, users need to install special software on their computers, usually free. Electronic network money is most often used to make payments in small amounts in online stores, virtual casinos and exchanges, to pay for those goods and services that are ordered via the Internet.

Quasi-money, or, in other words, almost money, are specific monetary forms, the monetary essence of which is significantly weakened and rejected from standard, generally accepted forms. This deviation is possible for several reasons:

  • If in standard forms the essence of money is significantly weakened (when funds are placed in long-term deposits, they usually retain the form of deposit money, but at the same time their liquidity, that is, the ability to perform the payment function, is significantly reduced).
  • When monetary functions perform non-standard forms that cannot be attributed to any of the above. For example, we can cite a bill of exchange, which, within certain limits, can be well used as money in the function of a means of payment and purchasing, although in fact in the general understanding it is not money at all. The same can be said about checks, as well as other monetary instruments.

What is quasi-money?

Quasi-money is:

  • certificates of deposit and shares of investment funds that invest exclusively in short-term monetary obligations;
  • funds placed in savings accounts in commercial banking institutions and other financial institutions, in time accounts

That is, quasi-money includes:

  • bank time deposits;
  • securities;
  • insurance policies.

Experts characterize quasi-money as non-state monetary instruments that are part of the private monetary system. The latter is a set of monetary instruments that are issued by non-governmental organizations and have the functions of a means of calculating and storing value. They are accepted as payment for a specific product or service by a certain group of persons (organizations). Therefore, some economists classify quasi-money as a network good.

A Brief History of Quasi-Money

It should be noted that the above specific monetary forms have a rather long history. A bill of exchange, for example, appeared and began to be actively used as a payment document much earlier than a banknote. The appearance of the check occurred after banking institutions began to accept funds on deposits (that is, approximately they appeared along with the banknote). The owner of a gold or silver deposit could, at his discretion, exercise his right to funds in two ways:

  • take a receipt from a banking institution and use it to pay for your obligations (it was such a receipt that paved the way for the emergence of a banknote);
  • conclude a special agreement with the bank that the latter will give it, that is, the owner, written orders to issue part or the entire amount of the deposit to a specific person, and the banking institution will carry them out (it was from such orders that the check arose).

Therefore, experts say, quasi-money is not some random or imposed form of money. Their emergence and continued use is a natural result of the evolution of forms of money. According to economists, they will also change over time in the future. The widespread development of “electronic money” may contribute to the fact that the check will simply lose its significance in the circulation of deposit money and its role as a type of quasi-money.

Classification of quasi-money monetary systems

There are three main types of non-state monetary instruments:

  • Cash, which are exchanged for national currency. An agent who owns such money can easily contact the institution that issued it with a request to exchange it for government cash. The ease of use of these funds is compensated by the low profitability of the latter. In addition, non-government monetary instruments that are exchanged for national currency are not without some of the disadvantages of the latter (they are also potentially subject to inflationary depreciation). On the other hand, non-government funds can theoretically generate interest income. In addition, they are very convenient for making calculations.
  • Non-government money that is denominated in government currency, but cannot be exchanged for it. They circulate within a specific group of participants and are used only for transactions that are known in advance. In fact, experts note, the acquisition of such funds represents a deferred purchase of a service or product.
  • Non-government money that has a backing that is different from the national currency. The guarantee of their stability is the business reputation of the issuer, its financial (for example, accounts, accounts receivable, securities) and commodity assets (for example, resources, consumer products, precious metals).

Quasi-money is divided into two types:

  • external (they are provided by the business reputation of the issuer);
  • domestic (financial and commodity assets, as well as money that can be freely exchanged for national currency).

The influence of quasi-money on the economy

Experts note that the above specific monetary forms differ positive influence on the economy:

  • provide good opportunity increase market liquidity by introducing additional payment instruments of quasi-monetary forms (for example, bills) into circulation;
  • makes money management more efficient and flexible;
  • helps to reduce the mass of means of payment in circulation due to the withdrawal of the latter into long-term deposits (this significantly contributes to the improvement of market conditions).

Which are converted into non-cash form. Such funds are located in savings and time deposits on the balance sheet of commercial banks. Among the most liquid financial instruments, circulating on the market. This is how the concept of quasi money is defined. The corresponding interpretation can be found in the Dictionary of Business Terms.

Assets

Let's turn to one more source. We are talking about the Explanatory Dictionary, compiled by S. Williams, Barry Brindley and Graham Betts. According to this source, quasi-money is a highly liquid, freely tradable asset. It can be used to pay off some, but not all, types of debt. This type of funds is liquid, but is inferior in this indicator to coins and banknotes. An example of such assets are quasi-money that is not part of what is in circulation. Synonyms for this term include the concept of coupon.

State of aggregation

You should also look into the Financial Dictionary. According to this source, quasi-money is highly liquid. They correspond to the aggregation level M2 as well as M3. They can be transferred to checking accounts without financial loss.

Other sources

Now let’s turn to the “Modern Economic Dictionary”, which was compiled by Starodubtseva, Lozovsky and Raizberg. According to this source, quasi-money is money held in non-cash form in commercial banks on savings deposits. A similar definition is given by the Economic and Mathematical Dictionary. This source refers to the IMF methodology and indicates that we're talking about about non-cash money placed on savings and time deposits in commercial banks. This concept can also be found on the pages of the Technical Translator's Handbook. However, the definition of this source is exactly the same as above and also refers to the International Monetary Fund. You can also refer to the Encyclopedia of Law for an explanation of this term. According to this source, we are talking about regional money, funds for internal use. Sometimes such assets are issued by individual organizations, regions or districts. Funds of this type are held in non-cash form on time deposits. A similar definition is given by the Big Economic Dictionary. He also defines this phenomenon as highly liquid assets.



@ 2024 kvartalmuz.ru - Prefabricated buildings from A to Z