a type of asset that is in cash in the current account of the commercial bank
a type of asset that is in the form of a deposit in the current account of the commercial bank
either of these
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is: A. a type of asset that is in cash in the current account of the commercial bank.
A liquid asset is an asset that can be quickly converted into cash without loss of value. Cash, bank deposits, and short-term government bonds are all examples of liquid assets.
Option B is incorrect because a deposit in a current account is not necessarily a liquid asset. If the deposit is subject to a notice period, it cannot be withdrawn immediately and is therefore not a liquid asset.
Option C is incorrect because both A and B are correct.
Option D is incorrect because A is the correct answer.