The proportion of commercial banks’ total assets kept in the form of highly liquid assets is known as
-
demand deposit
- fixed deposit
- cash ratio
- moral suasion
The correct answer is: A
Explanation
Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account. A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.