Consider the following liquid assets:
- Demand deposits with the banks
- Time deposits with the banks
- Savings deposits with the banks
The correct sequence of these assets in the decreasing order of liquidity is
[UPSC Civil Services Exam – 2013 Prelims]
- 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.