Which of the following is a liability of commercial banks?
Answer Details
A liability is an obligation or debt that a company owes to others. In the case of commercial banks, a liability refers to the money that the bank owes to its depositors and other creditors. This means that if someone deposits money in a bank, the bank is liable to return that money to the depositor on demand or as per the agreed terms.
Out of the given options, the liability of commercial banks is "deposits" since it is the money that the bank owes to its customers who have deposited their money in the bank. Money at call, loans to customers, and overdrafts are assets of commercial banks since they represent the money that the bank has lent out to its customers.