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WAEC Economics 2015 Objective — Question 38

Question 38 of 50 from the West African Examinations Council (WAEC) Economics 2015 Objective paper, with the correct answer and a full explanation.

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The proportion of commercial banks' total assets kept in the form of highly liquid assets is known as

  • A. demand deposit
  • B. fixed deposit
  • C. cash ratioCorrect
  • D. moral suasion

Explanation

The cash (liquidity) ratio is the proportion of a commercial bank's assets held in highly liquid form (cash and near-cash assets).

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