QUESTION

Medium

Economy

Prelims 2019

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

Select an option to attempt

Explanation

Assets represent the resources a bank owns. For a commercial bank, these resources include:

  • Advances (loans): Money lent to businesses, individuals, and other borrowers.
  • Investments Securities like government bonds, treasury bills, or shares in other companies.
  • Money at call and short notice: Funds are lent to other banks for a very short period, usually overnight.
  • Deposits are liabilities for a bank. They represent the money that customers entrust to the bank, which the bank is obligated to repay.

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