Module: | Priority Sector, Consumer Protection & Digital Lending
Q62: Consider the following liabilities of a bank. Which of these are classified as "Time Liabilities"?
1. Fixed Deposits (FDs).
2. Staff Security Deposits.
3. Current Account balances.
4. Demand Drafts (DDs) payable.
Which of the statements given above is/are correct?
2. Staff Security Deposits.
3. Current Account balances.
4. Demand Drafts (DDs) payable.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. Time Liabilities are those payable after a specific period or notice (e.g., Fixed Deposits, Recurring Deposits, Staff Security Deposits). Demand Liabilities are payable on demand (e.g., Current Accounts, Savings Accounts, Demand Drafts, Telegraphic Transfers). Therefore, statements 1 and 2 represent Time Liabilities, while statements 3 and 4 represent Demand Liabilities.