Which of the following is not true about a commercial Bank? Option 1: Assets = Reserves + Loans Option 2: Net worth = Assets -Liabilities Option 3: Liabilities = Loans Option 4: Deposits = Assets - Net worth

The answer is 'Liabilities = Loans'. View full solution:

CUET Economics - Which of the following is not true about a commercial Bank? | PYQs + Solutions

CUET Economics 2023 20 June Shift 1

Macro

Medium

Assets = Reserves + Loans

Net worth = Assets -Liabilities

Liabilities = Loans

Deposits = Assets - Net worth

✅ Correct Option: 3

Related questions:

26 May Shift 2

During the period of COVID, there was an apprehension that the Indian economy might slip into recession. Therefore, to combat the situation, the Reserve bank of India reduced the Repo rate by 110 basis points. Arrange the consequences of the same in sequential order.

(A) Increase in aggregate demand.

(B) Reduction in the market lending rate by commercial banks.

(D) Increase in borrowings by the public.

Choose the correct answer from the options given below:

28 May Shift 1

When the interest rate is very high, newspapers and media channels are predicting that it may fall in future and hence anticipate capital gains from bond-holdings. Hence, people convert their money into bonds.

In the above statement, which motive of money is highlighted?

Transaction Motive
Speculative Motive
Demonetisation Motive
Precautionary Motive

CUET Economics 2022 Slot 1

Identify which of the following measures taken by RBI will increase the money supply.

A. Increase in Cash Reserve Ratio

B. Decrease in Cash Reserve Ratio

C. Selling of a government bond

D. Buying of a government bond

E. Decrease in Bank Rate

Choose the correct answer from the options given below:

CUET Economics 2023 20 June Shift 1 PYQs

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