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Question No. 191Interactive Test Mode
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Q191. Consider the following liquid assets: 1. Demand deposits with the banks 2. Time deposits with the banks 3. Savings deposits with the banks 4. Currency The correct sequence of these assets in the decreasing order of liquidity is

Consider the following liquid assets:

  1. Demand deposits with the banks
  2. Time deposits with the banks
  3. Savings deposits with the banks
  4. Currency The correct sequence of these assets in the decreasing order of liquidity is
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2013 • Indian Economy

Correct Answer: Option (D) — 4–1–3–2

Concept & Option Breakdown

Standard Reference Verified

Liquidity refers to how quickly and easily an asset can be converted into spending medium without a loss of value:

  1. Currency (4) is physical cash and immediately liquid.
  2. Demand deposits (1) in current accounts can be withdrawn anytime on demand without restrictions.
  3. Savings deposits (3) are payable on demand but have certain operational/withdrawal caps.
  4. Time deposits (2) are locked for a fixed tenure and incur penalties upon premature withdrawal, making them the least liquid among the four.

Thus, the decreasing order of liquidity is 4–1–3–2.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2013 (Q191)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (D) — 4–1–3–2

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Frequently Asked Questions — UPSC Prelims 2013 Q191

What is the official answer for UPSC Prelims 2013 GS Paper I Question 191 (Indian Economy)?

The official UPSC answer key for this 2013 Indian Economy (Indian Economic Planning & Growth) question is Option (D): "4–1–3–2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2013 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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