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UPSC Prelims 2019 Paper-1 📅 02 Jun, 2019

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

A
Advances
B
Deposits
C
Investments
D
Money at call and short notice
Result Summary
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UPSC Prelims
2019 • 02 Jun, 2019 • Paper-1
Which of the following is not included in the assets of a commercial bank in India?
Correct Answer
Deposits
Balance Sheet Structure Analysis: For a commercial bank, 'assets' represent what the bank owns or what is owed to it (which generates income), while 'liabilitie......
Ref/Book : UPSC Prelims 2019
Ref. Subject Economy
Chapter -
Ref. Topic Banking and Finance
Pg. No -
💡 Analysis & Explanation
Balance Sheet Structure Analysis ▼
For a commercial bank, 'assets' represent what the bank owns or what is owed to it (which generates income), while 'liabilities' represent what the bank owes to external parties.
Component Classification ▼
Advances (loans given out), investments (such as government securities), and money at call and short notice are all income-generating assets. Conversely, 'Deposits' (like savings, fixed, or current accounts) are funds placed by customers into the bank. The bank has a strict obligation to return these funds upon demand or maturity.
Conclusion ▼
Deposits constitute the core liabilities of a bank, not assets, making option B the correct answer.
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