Which among the following shows a correct descending order of liquidity of M1, M2, M3?

CA Foundation · Business Economics · MTP · September 2024
Which among the following shows a correct descending order of liquidity of M1, M2, M3?
(A) A. M1 > M2, > M3
(B) B. M2 > M1 > M3
(C) C. M3 > M2 > M1
(D) D. M1 > M3 > M2

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. M1 > M2, > M3

Topics: Money Market

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