Memorial University of Newfoundland

Department of Economics
ECO 3150: Money and Banking
Dr. K. Chu

Liquidity of Assets

State whether the following statements are true, false, or uncertain and explain your reasoning.

1. A two-year term deposit at CIBC is less liquid than a chequeable deposit at TD Bank

2. A 180-day Treasury Bill (TB) is less liquid than a one-month time deposit at Royal Bank of
Canada

3. A house is more liquid than a 10-year government bond.

4. A common share of Air Canada is more liquid than a 91-Day TB