Question

The deposit made by one company with another company is called ______.

Options

• Public deposits

• Inter-corporate deposit

• Loan from Commercial Bank

• Loan from financial Institutions

Answer 1

The deposit made by one company with another company is called inter-corporate deposit.

Explanation:

• A short-term loan from one business to another is known as an inter-corporate deposit (ICD).
• Usually, it is employed to satisfy transient liquidity demands or short-term financial obligations.
• These deposits typically have greater interest rates than bank loans and are unsecured.