Which of the following bank assets is the most liquid?
A)consumer loans
B)reserves
C)state and local government securities
D)U)S. government securities

Question

Quizplus · Accepted Answer

Reserves are the most liquid bank asset as they are held in the form of cash or deposits at the central bank and can be easily used to meet customer withdrawal demands or make payments. Consumer loans and state and local government securities are less liquid as they may take time to sell or collect on, while U.S. government securities are relatively liquid but not as much as reserves.

Which of the Following Bank Assets Is the Most Liquid