UPSC Prelims 2019 · Question 14 of 99
UPSC Prelims 2019 question on Bank Assets and Liabilities
- ExamUPSC CSE
- Year2019
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicBanking
- DifficultyMedium
- TypeDirect
Which of the following is not included in the assets of a commercial bank in India?
Show answer
Answer: B. Deposits
Verdict
Correct answer: Deposits → Option (b).
Analysis
A bank places its funds in assets to earn profits. The assets include investments, loans and advances, money at call and short notice, bills discounted and purchased. It also includes the cash in hand with the banks and also the cash held with the RBI.
The liabilities include deposits (both time and demand) and borrowings.
Deposits are liabilities of a commercial bank, not assets. Hence Deposits is not included in the assets of a commercial bank.