11.   But then the discount houses in turn may be short of liquid assets to meet this demand.

12.   Liquid assets, however, tend to be unprofitable and profitable assets tend to be illiquid.

13.   At certain times, banks may decide that it is prudent to hold a bigger proportion of liquid assets.

14.   If Christmas or the Summer holidays are approaching and people are likely to make bigger cash withdrawals, banks may decide to hold more liquid assets.

15.   They may also do so if they anticipate that their liquid assets may soon be squeezed by government monetary policy.

16.   Thus, just because banks have acquired additional liquid assets, it does not automatically follow that they will create credit on the basis of it.

17.   To the extent that these are regarded as liquid assets, they can be used as the liquidity base for additional loans to customers.

18.   People will thus choose to keep their liquid assets in other currencies.

19.   The government was still monitoring all measures of money and a whole range of liquid assets.

20.   The reduction in one liquid asset will be offset to some extent by an increase in another liquid asset.