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Zorluk: OrtaTypes and Forms of Money

Arrange the following monetary assets in descending order of liquidity, starting from the most liquid form of money to the least liquid near-money instrument:

  1. 1Currency notes and coins held by the public
  2. 2Demand deposits in current accounts
  3. 3Savings bank account deposits
  4. 4Ninety-day Treasury bills

Cevap

The correct sequence from highest to lowest liquidity is: Currency notes and coins held by the public, followed by Demand deposits in current accounts, then Savings bank account deposits, and finally Ninety-day Treasury bills.
Liquidity measures how quickly and easily an asset can be converted into a medium of exchange without loss of value. Physical currency notes and coins are the definition of liquid cash. Demand deposits (cheque account balances) come next because they are spendable on demand. Savings account deposits are near-money, requiring transfer or withdrawal actions. Ninety-day Treasury bills are debt securities that must be discounted in the money market, giving them the lowest immediate liquidity among the choices.

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1
Identify the primary legal tender (actual cash money)
Currency notes and coins held by the public are at the top of the spectrum with perfect liquidity (100% liquid).
Cash requires no conversion and must be legally accepted to discharge debt instantly.
2
Determine commercial bank money directly usable for transactions
Demand deposits in current accounts occupy the second rank in liquidity.
Cheques drawn on current accounts transfer funds on demand, though secondary to cash because cheques can be refused.
3
Identify liquid financial assets requiring conversion to cash/cheque (Near-Money)
Savings deposits rank third in liquidity.
Savings accounts store value and earn interest but cannot directly settle debts in daily commerce without prior withdrawal.
4
Identify fixed-term money market assets with contractual maturity
Ninety-day Treasury bills occupy the final position as the least liquid asset listed.
Treasury bills represent short-term debt securities that must be sold on the secondary market or held to maturity to realize liquid cash.

Anahtar Kavram

Liquidity spectrum of money and near-money instruments
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Konular

Types and Forms of Money

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