BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Assets
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Time liability
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Demand liability
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Current Assets
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Detailed explanation-1: -fixed deposit is a capital asset.
Detailed explanation-2: -Is a fixed deposit an asset or a liability? Fixed Deposit is an asset . It may be classified under the group of Long Term Investments . But it can be turned to cash in a short time!
Detailed explanation-3: -Time liabilities refer to the liabilities which the commercial banks are liable to repay to the customers after an agreed period, and demand liabilities are customer deposits which are repayable on demand.
Detailed explanation-4: -The bank’s main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments).