Economy
2019
Banking in India
Which of the following is not included in the assets of a commercial bank in India?
B.Deposits
C.Investments
A.Advances
D.Money at call and short notice
Correct Answer: Option B
Assets of a commercial bank are items of value that the bank owns or is owed. These typically include:
- Cash in hand
- Investments
- Loans
- Advances
- Bills discounted and purchased
- Money at call and short notice
Liabilities represent what the bank owes to others. These typically include:
- Capital and Reserves
- Deposits
- Borrowings
- Other liabilities
Deposits are a liability for a commercial bank because the bank is obligated to return the deposited amount to the customer.
Advances, Investments, and Money at call and short notice are all assets of a commercial bank.
Hence, the correct answer is (b) Deposits.
Sources:
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