Which of the following is not a source of borrowed funds?

Debentures

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Public deposits

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Retained earnings

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Loans from financial institutions

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Solution

The correct option is C
Retained earnings

Answer (c) Retained earnings
Explanation: Retained earnings (RE) is the amount of net income that is left after the business has distributed its dividends to the investors. The management usually decides whether to retain the earnings or distribute it among its shareholders.

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