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 assets in the decreasing order of liquidity is

[UPSC Civil Services Exam – 2013 Prelims]

(a) 1-4-3-2

(b) 4-3-2-1

(c) 2-3-1-4

(d) 4-1-3-2


Answer: (d)        

Explanation:

  • Currency is most liquid because you can use it as and when you want.
  • A time deposit with the bank (e.g. fixed deposit), are the least liquid compared to a savings/demand deposit with banks and currency.
  • Demand deposit with bank >more liquid> savings deposit
  • Hence final order is 4-1-3-2​
  • Hence the correct option is 4.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

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