Cost of public deposits is generally _______ than the cost of borrowings from banks and financial institutions.

Higher

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Lower

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Equal

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Lower
The deposits that are raised by organisations directly from the public are known as public deposits. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.

Suggest Corrections

Similar questions

A commercial bank is a financial institution which performs the functions of accepting deposits from the general public and giving loans for investment with the aim of earning profits.

Q. ____ is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Q. Loan is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Q. A worldwide financial messaging network which exchanges messages between banks and financial institutions is known as_________.

Q. Many times we read in newspapers that a company is planning to bring a public issue. What does it mean?
A. Shares of the company will be issued only through public sector organisations like banks/Central financial institutions etc.
B. Shares of the company will be issued to general public only through primary market.
C. This means some stakeholders/promoters are willing to leave the company. Hence they wish to sell their stock to the general public.

Join BYJU'S Learning Program

Cost of public deposits is generally _______ than the cost of borrowings from banks and financial institutions.

The correct option is B LowerThe deposits that are raised by organisations directly from the public are known as public deposits. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.

The correct option is B Lower
The deposits that are raised by organisations directly from the public are known as public deposits. Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.