Question

Rates of interest offered on public deposits are usually _________ than that offered on bank deposits.

• A. Higher
• B. Lower
• C. Equal
• D. Both a and b

Answer 1

The correct option is A Higher

The deposits that are raised by organisations directly from the public are known as public deposits. Rates of interest offered on public deposits are usually higher than that offered on bank deposits.

Any person who is interested in depositing money in an organisation can do so by filling up a prescribed form. The organisation in return issues a deposit receipt as acknowledgment of the debt.