Economy
2019
Banking in India

Which of the following is not included in the assets of a commercial bank in India?

D.Money at call and short notice
B.Deposits
A.Advances
C.Investments

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.

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