Rank the following assets of a commercial banks in order of decreasing liquidity. (a) Inter-bank loans on the money market (b) Reserves with the Bank of England (c) Cash (d) Personal loans to customers (e) Sale and repurchase agreements (repos) (f) Mortgages (g) Government bonds (of from one to five years to maturity) High liquidity Low liquidity 7. Rank the following assets of a commercial banks in order of decreasing liquidity.(a) Inter-bank loans on the money market(b) Reserves with the Bank of England(c) Cash(d) Personal loans to customers(e) Sale and repurchase agreements (repos)(f) Mortgages(g) Government bonds (of from one to five years to maturity)High liquidityLow liquidity

The nations have various entities who are involved in various financial, and economic activities.…

Rank the following assets of a commercial banks in order of decreasing liquidity. (a) Inter-bank loans on the money market (b) Reserves with the Bank of England (c) Cash (d) Personal loans to customers (e) Sale and repurchase agreements (repos) (f) Mortgages (g) Government bonds (of from one to five years to maturity) High liquidity Low liquidity

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 4.11P

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Rank the following assets of a commercial banks in order of decreasing liquidity.

(a) Inter-bank loans on the money market

(b) Reserves with the Bank of England

(d) Personal loans to customers

(e) Sale and repurchase agreements (repos)

(f) Mortgages

(g) Government bonds (of from one to five years to maturity)

High liquidity

Low liquidity

7. Rank the following assets of a commercial banks in order of decreasing liquidity.
(a) Inter-bank loans on the money market
(b) Reserves with the Bank of England
(c) Cash
(d) Personal loans to customers
(e) Sale and repurchase agreements (repos)
(f) Mortgages
(g) Government bonds (of from one to five years to maturity)
High liquidity
Low liquidity

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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