Quasi Money

The term quasi money refers to assets which can be easily converted to cash because they are in high demand and are issued by entities with excellent creditworthiness.

Examples of quasi money include gold certificates, bonds issued by creditworthy governments and certificates of deposit issued by creditworthy banks.

Book money, such as account balances at commercial banks, may also be considered quasi money because it is assumed that the bank will repay the debt in base money upon request. Other forms of quasi money include liquid cash equivalents like travelers checks, gift cards and vouchers which have fixed redemption values.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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