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Question
With respect to Monetary aggregates, which of the following is the most liquid aggregate?
With respect to Monetary aggregates, which of the following is the most liquid aggregate?
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Solution
The correct option is A M1
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The liquidity means how fast an instrument can be converted into cash. The liquidity of these measures are in order M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> The liquidity means how fast an instrument can be converted into cash. The liquidity of these measures are in order M1>M2>M3>M4 i.e. M1 is most liquid and M4 is least liquid.
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