Which among the following is not a liability of a bank?
-
time deposits
-
demand deposits
-
security holdings
-
None of the above
C
Correct answer
Explanation
Bank liabilities are obligations that banks owe to depositors and other creditors. Time deposits (fixed deposits) and demand deposits (savings, current accounts) are liabilities as banks must repay these funds. Security holdings (government securities, bonds) are assets for banks, not liabilities. They represent claims on income or assets.