Question

Public deposits are deposits that are raised directly from

(a) The public

(b) The directors

(c) The auditors

(d) The owners

Answer 1

Public deposits are raised directly from the public. These deposits are generally issued by organisations to finance their short-term and medium-term requirements of funds. The rate of returns on such deposits is generally higher than the returns on bank deposits.

Hence, the correct answer is option (a).