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Which of the following best explains the liability nature of bank deposits?

medium Q7 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which of the following best explains the liability nature of bank deposits?
AThey reduce bank income
BThey are owned by customers
CThey must be repaid by the bank
DThey increase bank expenses
Step-by-Step Solution

  1. Step 1: Identify repayment duty

    Liabilities involve repayment obligations.

  2. Step 2: Apply to deposits

    Banks must repay deposits to customers.

  3. Final Answer:

    They must be repaid by the bank → Option C

  4. Quick Check:

    Repayment obligation defines liability ✅
Quick Trick: Must repay = liability.
Common Mistakes:
  • Focusing only on interest paid.
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