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 ratio
D. moral suasion

Correct Answer: Option A

A. demand deposit

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Demand deposit:- is a deposit of money that can be withdrawn without prior notice, e.g. in a current account.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.