Advertisements
Advertisements
Question
A public deposit is a deposit made by public in the nationalised banks.
Options
True
False
Solution
This statement is False.
Explanation:
Public deposits are a source of financing for companies, where the general public is invited to deposit their money directly with the company for a fixed period and at a predetermined interest rate. This is different from bank deposits.
APPEARS IN
RELATED QUESTIONS
State, with reasons, whether the following statements are True
or False (Any THREE) :
A company can accept deposits repayable on demand.
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.
Draft a letter to a depositor informing him about payment of interest.
What are the provision and rules of companies Act1956 with respect to the Invitation of Public deposits?
State the merits and demerits of public deposits and retained earnings as methods of business finance.
Discuss the importance of public deposits as sources of medium and short-term finance.
Public deposits are a source of long-term finance.
Describe the disadvantages of public deposits.
