Yes, it is an idiomatic form that can mean "nearly" or approximately.
"It cost close to a million dollars."
It is not a preposition because the amount already modifies the verb cost.
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The adjective form is near (near by, or close). Adding -LY makes it an adverb, meaning "closely" or "almost."
NO!!! It is a superlative adjective. e.g. Dative ; close Comparative ; closer Superlattive ; closest . The house along the road is close to our house. The house , next but one, is closer to our house The adjacent house is the closest to our house.
It can be either. If the object is named, it is a preposition (near the wall). If there is no object, it just means "nearby" or "close." (Near can also be an adjective.)
Does is a verb, not an adverb.
The adverb is highly