Which of the following did the conventional method specifically define as 'quasi-money'?

Correct option is C

The correct answer is (c) Financial instruments that are not media of exchange but are substitutes.

Explanation
Quasi-money refers to financial assets that are not directly used as a medium of exchange but can be easily converted into cash or demand deposits. These include savings accounts, fixed deposits, and money market instruments, which function as near-money substitutes in an economy.

Information Booster

• Examples: Time deposits, savings accounts, certificates of deposit
• Not directly used for transactions but highly liquid
• Supports credit expansion and economic stability

Additional Knowledge

• Media of exchange considered as money – Includes cash and demand deposits that directly facilitate transactions.
• All forms of money – Covers narrow money (M1), broad money (M2, M3, M4), including physical currency and bank deposits.
• Narrow money – Refers to currency in circulation and demand deposits, which are immediately liquid and used for transactions.