Step 1: Defining commercial bank liabilities.
Commercial banks' liabilities encompass deposits, borrowings, and sums owed to third parties. Conversely, paid-up capital and reserves are classified as equity or ownership, not liabilities.
Step 2: Evaluating the options.
- (A) Paid-up capital and reserves: Correct. These constitute the bank's equity and are not liabilities.
- (B) Time and demand deposits: These are liabilities as the bank has an obligation to depositors.
- (C) Money at call and short notice: This is a liability, representing funds payable to others on demand.
- (D) Borrowings: These are liabilities, as the bank owes money to creditors.
Step 3: Final determination.
Since paid-up capital and reserves are not liabilities, option (A) is the correct selection.