Which of the following is not included in the assets of a commercial bank in India?
✓ Correct answer: b) Deposits
ExplanationA bank’s assets are what it owns and what gener- ates income for the bank.They represent how the bank uses the funds it has mobilized.A bank’s liabilities are what it owes to others.They represent the sources of funds that the bank uses to acquire assets and conduct its business.A commercial bank’s balance sheet, assets and liabilities are cat- egorized as follows: Assets:Advances: These are loans and credits extended to customers, generating interest income for the bank.Investments: Holdings in government securities, bonds, and other approved securities that earn returns.Money at Call and Short Notice: Short-term funds lent to other banks or financial institutions, typically repayable on demand or within a short period.Liabilities:Deposits: Funds accepted from the public, including savings, current, and fixed deposits, which the bank is obligated to repay.Hence, option (b) is correct.162
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