Question
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
Attempt this previous-year question. The correct option stays hidden until you choose.
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
Pick an option to check yourself.
• 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.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.