Answer to Question #222731 in Macroeconomics for GabrielIe

Question

Rank the following assets of a commercial bank in order of decreasing liquidity.
(a) Market loans
(b) Reserves with the Bank of Ghana
(c) Cash
(d) Personal loans
(e) Sale and repurchase agreements (repos)
(f) Mortgages
(g) Government bonds (of from one to five years to maturity)
High liquidity
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Answer 1

The most liquid are the one's which can be converted into cash easily. All the above mentioned can be ranked in order of decreasing liquidy starting from the most liquid as : 

a.) Cash

b.) Reserve with the Bank of Ghana 

c.) Personal Loan

d.) Market Loan

e.) Sale and repurchase agreements (repos)

f.) Mortgages 

g.) Government Bonds ( one to five years of maturity)