Correct answer: (b) Deposits
Explanation
- A
Advances
(a) Advances are loans and are assets of a commercial bank. The question asks what is not an asset, so this is not the key.
- B
Deposits
(b) Deposits are the bank’s liabilities to customers, not assets. That is why deposits are the official key as the item that does not belong on the asset side.
- C
Investments
(c) Investments (G-Secs, approved securities) are assets. This option is not the key.
- D
Money at call and short notice
(d) Money at call and short notice is a money-market asset. This option is not the key.
Summary. Official key is (b). On a commercial bank’s balance sheet, deposits are liabilities. Advances, investments and call money are assets. The question asks for the non-asset. Honour (b).
PYQ trend
When UPSC asked this
Related PYQs from other years, newest first. Open a question to read it.
-
2016 · Q12 · General Studies · 2 marks
Which of the following is/are included in the capital budget of the Government of India? 1. Expenditure on acquisition of assets like roads, buildings, machinery, etc. 2. Loans received from foreign governments 3. Loans and advances granted to the States and Union Territories Select the correct answer using the code given below -
2016 · Q29 · General Studies · 2 marks
The term 'Core Banking Solution' is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below