Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Question:

For a bank, the main liability is the ______.

Options:

deposits

economic rent

assets 

loans

Correct Answer:

deposits

Explanation:

- A deposit generally refers to money held in a bank account. A deposit can also be the funds used as security or collateral for the delivery of goods or services.

- Bank liabilities refer to a debt or financial obligation. Bank liabilities are the things owed by the bank, such as interest owed to other banks and other debts owed. 

- Thus, deposits are main liabilities for a bank.