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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
Depositors are ______ of a company.
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.
Public Deposits are accepted to meet the requirement of ______ Capital.
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.
Return on investment on deposit.
Write a word or a term or a phrase which can substitute the following statement.
Maximum period of deposits.
State whether the following statement is true or false.
Fixed Deposit holder is creditor of the company.
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.
Complete the sentence.
Depositors are entitled to receive ______ at fixed rate.
Answer in one sentence.
Who is depositor?
Correct the underlined word and rewrite the following sentence.
Deposits are the internal source of financing.
Correct the underlined word and rewrite the following sentence.
Depositors are entitled to receive dividend.
Arrange in proper order
- Renewal of Deposit
- Acceptance of Deposits
- Deposit Receipt
Explain the following term/concept.
Deposit
Answer in brief.
What precautions are to be borne in mind by the Secretary, while corresponding with Depositors.
