Which of the following are liabilities of commercial banks ? I. Capital and reserves II. Cash and…
Capital/reserves and borrowings sit on the liabilities/equity side; cash/RBI balances and investments are assets. Equity is not a creditor liability but grouped on that side…
Choose your answer
Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Answer and explanation
Correct answer B
Capital/reserves and borrowings sit on the liabilities/equity side; cash/RBI balances and investments are assets. Equity is not a creditor liability but grouped on that side conventionally.
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UGC NET Economics