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Which of the following is not included in the assets of a commercial bank in India?
[2019]
- a)Advances
- b)Deposits
- c)Investments
- d)Money at call and short notice
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following is not included in the assets of a commercial b...
Assets of a Commercial Bank in India
A commercial bank in India has several assets that contribute to its overall financial strength. These assets include:
Advances: This refers to the loans and credit facilities that the bank extends to its customers. These can be in the form of business loans, personal loans, home loans, and so on.
Investments: A commercial bank can invest its funds in a variety of financial instruments such as government securities, corporate bonds, and equity shares of companies.
Money at call and short notice: This refers to the funds that the bank has invested in other financial institutions which can be called back on short notice.
Not included in the assets of a commercial bank in India
Deposits: Although deposits are a crucial source of funds for a commercial bank, they are not included in the bank's assets. This is because deposits represent liabilities for the bank as it has to repay the depositors on demand or at a predetermined date. Thus, deposits are recorded under the liabilities section of the bank's balance sheet.
Conclusion
In conclusion, a commercial bank in India has several assets that contribute to its overall financial strength. These include advances, investments, and money at call and short notice. However, deposits are not included in the bank's assets as they are liabilities that the bank owes to its depositors.
A commercial bank in India has several assets that contribute to its overall financial strength. These assets include:
Advances: This refers to the loans and credit facilities that the bank extends to its customers. These can be in the form of business loans, personal loans, home loans, and so on.
Investments: A commercial bank can invest its funds in a variety of financial instruments such as government securities, corporate bonds, and equity shares of companies.
Money at call and short notice: This refers to the funds that the bank has invested in other financial institutions which can be called back on short notice.
Not included in the assets of a commercial bank in India
Deposits: Although deposits are a crucial source of funds for a commercial bank, they are not included in the bank's assets. This is because deposits represent liabilities for the bank as it has to repay the depositors on demand or at a predetermined date. Thus, deposits are recorded under the liabilities section of the bank's balance sheet.
Conclusion
In conclusion, a commercial bank in India has several assets that contribute to its overall financial strength. These include advances, investments, and money at call and short notice. However, deposits are not included in the bank's assets as they are liabilities that the bank owes to its depositors.
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Which of the following is not included in the assets of a commercial b...
NCERT Macroeconomics Class12, page 40: observe the table 3.1: Deposits are plotted on the liability side of a commercial bank’s balance sheet.
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Which of the following is not included in the assets of a commercial bank in India?[2019]a)Advancesb)Depositsc)Investmentsd)Money at call and short noticeCorrect answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is not included in the assets of a commercial bank in India?[2019]a)Advancesb)Depositsc)Investmentsd)Money at call and short noticeCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not included in the assets of a commercial bank in India?[2019]a)Advancesb)Depositsc)Investmentsd)Money at call and short noticeCorrect answer is option 'B'. Can you explain this answer?.
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