2019 GS Paper I, all questions
UPSC Prelims 2019 · GS Paper I
Question 64: Economy and Social Development
Which of the following is not included in the assets of a commercial bank in India?
aAdvances
bDeposits
cInvestments
dMoney at call and short notice
AnswerUPSC’s answer is (b).
On a bank's balance sheet, deposits are liabilities, since they are what the bank owes to its depositors. Assets are what the bank owns or is owed: advances (loans), investments in government securities and other instruments, cash and balances with the RBI, and money at call and short notice. So deposits are the item not included among a commercial bank's assets.
Why each option is right or wrong
- (a) Advances are loans the bank has given, so they are assets.
- (b) Correct: deposits are a liability of the bank.
- (c) Investments in securities are assets of the bank.
- (d) Money at call and short notice is an asset of the bank.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2019, General Studies Paper I, Series A. The paper on upsc.gov.in.