BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a liability of commercial banks?
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Time deposits
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Borrowing from Central Bank
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Security holdings
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Demand deposits
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Explanation:
Detailed explanation-1: -Answer and Explanation: T-bills will not be a liability for a bank as banks use their money to buy government treasury bills.
Detailed explanation-2: -The bank’s main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits.
Detailed explanation-3: -Hence, Issuing of Notes is not the function of a Commercial Bank.
Detailed explanation-4: -The correct answer is Deposits.
There is 1 question to complete.