{"id":91118,"date":"2025-06-01T10:47:13","date_gmt":"2025-06-01T10:47:13","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91118"},"modified":"2025-06-01T10:47:13","modified_gmt":"2025-06-01T10:47:13","slug":"consider-the-following-liquid-assets-demand-deposits-with-the-bank","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/","title":{"rendered":"Consider the following liquid assets :\n Demand deposits with the bank"},"content":{"rendered":"

Consider the following liquid assets :<\/p>\n

    \n
  1. Demand deposits with the banks<\/li>\n
  2. Time deposits with the banks<\/li>\n
  3. Savings deposits with the banks<\/li>\n
  4. Currency<\/li>\n<\/ol>\n

    The correct sequence of these assets in the decreasing order of liquidity is<\/p>\n

    [amp_mcq option1=”1-4-3-2″ option2=”4-3-2-1″ option3=”2-3-1-4″ option4=”4-1-3-2″ correct=”option4″]<\/p>\n

    \n
    \n
    This question was previously asked in<\/div>\n
    UPSC IAS – 2013<\/div>\n<\/div>\n
    Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
    \nThe correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2.
    \n<\/section>\n
    \nLiquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.
    \n<\/section>\n
    \nThis hierarchy of liquidity is fundamental to understanding monetary aggregates (like M1, M2, M3, M4) where assets are grouped based on their liquidity levels. M1 typically includes currency and demand deposits, being the most liquid forms of money.
    \n<\/section>\n","protected":false},"excerpt":{"rendered":"

    Consider the following liquid assets : Demand deposits with the banks Time deposits with the banks Savings deposits with the banks Currency The correct sequence of these assets in the decreasing order of liquidity is [amp_mcq option1=”1-4-3-2″ option2=”4-3-2-1″ option3=”2-3-1-4″ option4=”4-1-3-2″ correct=”option4″] This question was previously asked in UPSC IAS – 2013 Download PDFAttempt Online The … <\/p>\n

    Detailed SolutionConsider the following liquid assets :
    \n Demand deposits with the bank<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1467,1120,1190],"class_list":["post-91118","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1467","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nConsider the following liquid assets : Demand deposits with the bank<\/title>\n<meta name=\"description\" content=\"The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2. Liquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consider the following liquid assets : Demand deposits with the bank\" \/>\n<meta property=\"og:description\" content=\"The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2. Liquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:47:13+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Consider the following liquid assets : Demand deposits with the bank","description":"The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. 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Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/","og_locale":"en_US","og_type":"article","og_title":"Consider the following liquid assets : Demand deposits with the bank","og_description":"The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2. Liquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. Time deposits (like Fixed Deposits) are the least liquid among these options, as premature withdrawal incurs penalties.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:47:13+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/","url":"https:\/\/exam.pscnotes.com\/mcq\/consider-the-following-liquid-assets-demand-deposits-with-the-bank\/","name":"Consider the following liquid assets : Demand deposits with the bank","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:47:13+00:00","dateModified":"2025-06-01T10:47:13+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct sequence of the given liquid assets in decreasing order of liquidity is Currency, followed by Demand deposits, then Savings deposits, and finally Time deposits. This corresponds to the order 4-1-3-2. Liquidity refers to the ease with which an asset can be converted into cash without affecting its price. Currency is the most liquid asset as it is readily spendable cash. Demand deposits (like current accounts) are highly liquid as funds can be withdrawn on demand. Savings deposits are generally less liquid than demand deposits due to possible limits on withdrawals, though in practice, they are often very liquid. 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