Question : _____________comprises Cash on Hand and demand deposits with banks.
Option 1: Fixed assets
Option 2: Inventory
Option 3: Cash
Option 4: None of the above
Correct Answer: Cash
Solution : Answer = Cash
Cash comprises of cash in hand and demand deposit with the bank. It represents liquid assets readily available for transactions and payments. Unlike fixed assets and inventory, which are non-liquid assets, cash is easily accessible and can be used for immediate financial needs, making it a crucial component of a company's liquidity. Hence, the correct option is 3.
Question : _____________unless specified otherwise, are taken as Marketable Securities and included in Cash and Cash Equivalents.
Question : Demand deposits include______
Question : Under the Statutory liquidity ratio, commercial banks are required to keep a fraction of ____ in the form of liquid assets.
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