Multiple Choice Questions on Consider the following liquid assets 1 Demand deposits with the banks 2 nbs........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

Consider the following liquid assets 1 Demand deposits with the banks 2 nbs...........

Economic Affairs Money Supply and Monetary Policy
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    Consider the following liquid assets:

    1.    Demand deposits with the banks

    2.    Time deposits with the banks

    3.    Currency

     The correct sequence of this decreasing order of Liquidity is

    1-3-2   

    Incorrect Answer

    3-2-1

    Incorrect Answer

    2-1-3   

    Incorrect Answer

        3-1-2

    Correct Answer
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    Explanation:

    Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all is cash itself.

    Currency is most liquid followed by Demand deposits and then Time deposits.

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    Tajeshwar

    answer 2 and 4 are same.

    0 0 reply

    Atika

    Option 2 & 4 are same

    0 0 reply
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