Give any three advantages of intercorporate deposits.

Open in App

Solution

Three advantages of intercorporate deposits are :

(a) Easy Availability - Inter corporate deposits are easily available with an assured supply of funds as no mortgage of assets is required.

(b) Free from legal formalities - ICDs are free from legal and bureaucratic hassels.

(c) Avenues for cash surplus Companies - ICDs provide good avenues to cash surplus companies for parking their funds on short-term basis with high returns.

Suggest Corrections

Similar questions

Despite a number of advantages, a journal also suffers from various limitations. Give any three such limitations.

Write any three advantages of Accounting.

Join BYJU'S Learning Program