Question:
Which of the following is a liability of a commercial bank Balance Sheet?
(1) Treasury bills
(2) Customer deposits
(3) Loans and advances
(4) Money at call
(5) Bills discounted
Correct Answer:
(2)
Answer Explanation:
In banking, an asset is something the bank owns (like loans it has given out or treasury bills it holds). A liability is something the bank owes. Customer deposits belong to the customers, not the bank; therefore, the bank owes this money back to the depositors, making it a liability.
Topic: Money and Banking Year: 2018
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