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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
Select the proper option from the option given below and rewrite the sentences:
Company can accept deposits from public, maximum for _____ months.
Write notes on (Any Three)
Repayment of Deposits.
State, with reason, whether the following statement is True or False.
A public company can receive deposits from the public to any extent.
What are the provision and rules of companies Act1956 with respect to Acceptance of Public Deposits?
OR
Explain the features/ Advantages of deposits or Public Deposits.
With reference to business finance, explain the following:
Public Deposits
Multiple Choice Question:
Public deposits are deposits that are raised directly from
State the merits and demerits of public deposits and retained earnings as methods of business finance.
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.
