For a commercial bank, loans are assets (money owed to the bank), not liabilities. Deposits are the bank's main liabilities. So 'Liabilities = Loans' is incorrect. The other statements hold: Assets = Reserves + Loans; Net worth = Assets - Liabilities; and Deposits = Assets - Net worth (derived from the balance sheet identity).
Which of the following is not true about a commercial Bank?
CUET UG 2023 — Economics Macro
2023mcqmedium
Which of the following is not true about a commercial Bank?
Official previous-year question
Verified 13 Jul 2026.
Options
- A
Assets = Reserves + Loans
- B
Net worth = Assets -Liabilities
- C
Liabilities = Loans
- D
Deposits = Assets - Net worth
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