Liquidity refers to how quickly and easily an asset can be converted into cash without loss of value. Let’s analyze the given assets:

1. Demand deposits with the banks – These can be withdrawn anytime on demand. Highly liquid.

2. Time deposits with the banks – These cannot be withdrawn before maturity without penalty. Less liquid.

3. Savings deposits with the banks – Can be withdrawn but often require notice; slightly less liquid than demand deposits.

4. Currency – Cash is the most liquid form of asset.

Arranging in decreasing order of liquidity: Currency > Demand deposits > Savings deposits > Time deposits