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  • question_answer
          Consider the following liquid assets:
    1. Demand deposits with the banks
    2. Time deposits with the banks
    3. Saving deposits with the banks
    4. Currency
    The correct sequence of these assets in the decreasing order of liquidity is

    A) 1-4-3-2                         

    B) 4-3-2-1

    C)  2-3-1-4            

    D) 4-1-3-2

    Correct Answer: D

    Solution :

    Currency/cash is the most liquid .then the demand deposits (current accounts), then the saving deposits with bank and finally the least liquid is the time deposits with the bank (fixed deposits).


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