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Question
Explain the following term/concept.
Interest on Deposit
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Solution
The company accepts deposits in order to meet the short-term requirement of the company. A deposit is a borrowed capital. The company is liable to pay a fixed rate of interest on the amount invested in deposits by the depositors. The company pays interest through interest warrant or electronic mode i.e. NEFT, ECS etc.
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RELATED QUESTIONS
A Company cannot accept deposit for more than ______ months.
Select the correct answer from the options given below and rewrite the statement.
A company cannot accept deposit for less than ______ months.
Select the correct answer from the options given below and rewrite the statement.
Deposits are ______ loans of the company.
Select the correct answer from the options given below and rewrite the statement.
Rate of interest on deposits is ______.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Depositors | 1) Fixed |
| b) Rate of Interest on Deposits | 2) Evidence of ownership |
| c) Deposit Receipt | 3) Debtors |
| 4) Creditors | |
| 5) Evidence of deposit | |
| 6) Fluctuating |
Write a word or a term or a phrase which can substitute the following statement.
An acknowledgement of the fixed deposit accepted by a company.
State whether the following statement is true or false.
Fixed Deposit holder is creditor of the company.
State whether the following statement is true or false.
Deposits are invited by the company without issuing statutory advertisement.
State whether the following statement is true or false.
A Private Company cannot accept the deposits from the general public.
Complete the sentence.
Deposit is a ______ term source of finance of the company.
Complete the sentence.
A company can accept deposits for the minimum period of ______ months.
Answer in one sentence.
Who is depositor?
Answer in one sentence.
What is Interest Warrant?
Correct the underlined word and rewrite the following sentence.
Depositors are entitled to receive dividend.
Arrange in proper order
- Payment of Interest
- Deposit Receipt
- Acceptance of Deposits
Answer in brief.
What precautions are to be borne in mind by the Secretary, while corresponding with Depositors.
