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Question
Public deposits are a source of long-term finance.
Options
True
False
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Solution
This statement is False.
Explanation:
Public deposits are generally a source of short-term or medium-term finance. Companies use them to raise funds from the public for a fixed period, usually up to 3 years, making them unsuitable for long-term financing.
RELATED QUESTIONS
Write a word, term, or phrase that can substitute for
the following statement:
The authority which has power to accept deposits.
State, with reasons, whether the following statements are True
or False (Any THREE) :
A company can accept deposits repayable on demand.
Write notes on (Any Three)
Repayment of Deposits.
Draft a letter to a depositor informing him about payment of interest.
What are the provision and rules of companies Act1956 with respect to Acceptance of Public Deposits?
OR
With reference to business finance, explain the following:
Public Deposits
Multiple Choice Question:
Public deposits are deposits that are raised directly from
A public deposit is a deposit made by public in the nationalised banks.
Discuss the importance of public deposits as sources of medium and short-term finance.
Explain the pros and cons of public deposits as a source of business finance.
