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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-
1–4–3–2
4–3–2–1
2–3–1–4
4–1–3–2
A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash is similar to cash itself because the asset can be sold with little impact on its value Liquidity of currency is highest. Next will come demand liabilities, as they have to be cleared when demanded. Next savings and least liquidity will be of time deposits
Report error
Sarthak Hans
The option is correctly marked
vikram madan
demand deposit is more liquid
saving should come before demand
Kindly revisit demand deposit will be more liquid.
options should be 4 3 1 2
4132 is the correct option
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