BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reserve fund
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Loans & advances
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Bills discounted
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Bills for collection
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Detailed explanation-1: -Answer and Explanation: The correct answer is D The banks capital appears on the liabilities side of a commercial banks balance sheet. Liabilities can be defined as what the bank is owed to pay within a given period. It includes the loans issued to the banks and the credits given to the banks.
Detailed explanation-2: -Liabilities are the debts you owe to other parties. A liability can be a loan, credit card balances, payroll taxes, accounts payable, expenses you haven’t been invoiced for yet, long-term loans (like a mortgage or a business loan), deferred tax payments, or a long-term lease.
Detailed explanation-3: -Balance sheet reserves are liabilities that appear on the balance sheet. The reserves are funds set aside to pay future obligations.
Detailed explanation-4: -The liability side of the balance sheet chiefly comprises of notes issued (53%), deposits by commercial banks held by RBI or the cash reserve ratio (19%) and other liabilities and provisions (28%).