Question:medium

Money deposited in the banks are considered __________ of the banks.

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For banks: Deposits = Liabilities, Loans = Assets. This is opposite to the customer’s perspective.
Updated On: Apr 2, 2026
  • Asset
  • Net Worth
  • Liabilities
  • Statutory Liquid Ratio
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The Correct Option is C

Solution and Explanation

Step 1: Understand a bank's balance sheet.
- Assets: Bank-owned items like loans, investments, and reserves.
- Liabilities: Bank obligations such as deposits and borrowings.
Step 2: Classify deposits.
Customer deposits are funds accessible for immediate withdrawal, representing obligations of the bank. Therefore, deposits are classified as liabilities.
Step 3: Rule out alternatives.
- (A) Assets → Incorrect. Bank loans are assets; deposits are not.
- (B) Net worth → Represents capital and reserves, distinct from deposits.
- (D) SLR → A regulatory mandate, not a classification of deposits.
Final Answer: \[\boxed{\text{Liabilities}}\]
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