[amp_mcq option1=”Demand deposits” option2=”Time deposits” option3=”lnter-bank liabilities” option4=”Other borrowings” correct=”option1″]<\/p>\n
The correct answer is (a) Demand deposits.<\/p>\n
Demand deposits are the most important component of the liabilities of commercial banks in India. They are deposits that can be withdrawn on demand by the depositor, without any notice or penalty. Demand deposits are the most liquid of all bank liabilities, and they are the main source of funds for commercial banks.<\/p>\n
Time deposits are deposits that cannot be withdrawn on demand, but only after a certain period of time has elapsed. Time deposits are less liquid than demand deposits, but they offer a higher interest rate.<\/p>\n
Inter-bank liabilities are loans that commercial banks make to each other. These loans are used to meet short-term liquidity needs.<\/p>\n
Other borrowings are loans that commercial banks make from other sources, such as the central bank or other financial institutions. These loans are used to finance long-term investments.<\/p>\n
Demand deposits are the most important component of the liabilities of commercial banks in India because they are the most liquid of all bank liabilities. Demand deposits are the main source of funds for commercial banks, and they are used to finance a variety of activities, such as lending to businesses and consumers, investing in securities, and holding reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Demand deposits” option2=”Time deposits” option3=”lnter-bank liabilities” option4=”Other borrowings” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-4157","post","type-post","status-publish","format-standard","hentry","category-banking","no-featured-image-padding"],"yoast_head":"\n