Mention any two drawbacks of public deposits as a source of finance. – InterviewSolution

InterviewSolution

1.

Mention any two drawbacks of public deposits as a source of finance.

Answer»

(i) Public deposits are an uncertain and unreliable source of finance.

(ii) Public deposits distort the interest rate pattern.

(iii) Public deposits are generally not available to new companies and those with uncertain earnings.

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