ATTEMPT · INDIAN ECONOMY · PRELIMS 2013
Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Sa…
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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 decreasing order of Liquidity is
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• Correct Answer: D
• Liquidity order: Currency (most liquid) > Demand deposits > Savings deposits > Time deposits (least liquid).
• Time deposits carry penalties for premature withdrawal, making them least liquid.
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