Publish On: 2019-05-06
Total Post: 416
Question: Define bank deposits.
Reply On: 2013-06-22
Total Post: 8
ANS: Define bank deposits.
A firm can deposit its temporary cash in a bank for a fixed period of time. The interest rate depends on the maturity period. For example, the current interest rate for a 30 to 45 days deposit is about 3 per cent. The default risk of the bank deposits is quite low wince the government owns most banks.
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