- For a commercial bank, assets are typically items it owns or amounts owed to it. Liabilities are amounts it owes to others. - When a bank gives credit (a loan) to farmers, the farmers are obligated to repay the loan with interest. This future stream of payments or the principal amount owed is an asset for the bank. - Deposits of public (B) and Demand deposits of Industries (D) represent money deposited by customers in the bank. This money is owed by the bank to the depositors, making these liabilities for the bank. - Borrowings from RBI (C) represent money that the commercial bank has borrowed from the central bank. The commercial bank is obligated to repay this amount to the RBI, making it a liability.
Which among the following is an asset for a Commercial Bank ?
Asked in UPPSC Upper Mains 2007 · Topic: Money & Banking (Commercial Banking: Structure, Functions, and Recent Reforms in India)
More Economic Development questions
- Consider the following statements: The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 per cent of the paid up capital. Foreign Direct Investment up to 49 per cent from all sources is permitted in private sector banks in India under the automatic route. Which to these statements is/are correct?
- How many banks were nationalized in India in 1980 ?
- Impact of bank nationalisation did not include this:
- In the pre reform period, monetary, fiscal and administrative connection for banking activities were
- Bank nationalisation had the following objective:
- Reducing the concentration of economic power. 99. Maintenance of high statutory liquidity ratio (SLR) was not favoured by
- Financial Reforms Committee recommended _____ .
- Priority sector lending by commercial banks ______