Liquid asset is

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 If the deposit is subject to a notice period, it cannot be withdrawn immediately and is therefore not a liquid asset.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.