8. What is liquidity? Rank the following assets in order of their liquidity: $10 bill, personal check for $20, savings account with $400 in it, stereo, car, house, travelers’ check.

Use the following table on the components of money in a hypothetical economy to do exercises 9–10.

Money Component Amount Travelers’ checks $ 100 Currency 2,000 Small-denomination time deposits 3,500 Savings deposits 2,000 Demand deposits 5,000 Other checkable deposits 9,000 U.S. Treasury bonds 25,000 Retail money market mutual funds 7,500