Consider the following liquid assets: 1. Demand deposits

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Consider the following liquid assets:

1. Demand deposits with the banks

2. Time deposits with the banks

3. Savings deposits with the banks

4. Currency

The correct sequence of these assets in the decreasing order of liquidity is

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4. ??????

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[Economics Prelims 2000-2018 Part-1]

A ) 1–4–3–2

1-4-3-2

B 4–3–2–1

4-3-2-1

C 2–3–1–4

2-3-1-4

D ) 4–1–3–2

4-1-3-2

Liquidity of currency is highest. Next will come demand liabilities, as they hav...

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