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The deposits that are raised by organizations directly from the public are known asa.Public depositsb.Private depositsc.Public depositsd.Bank deposits

Question

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Solution

The correct answer to the question is a. Public deposits.

Explanation

Public deposits refer to the funds that organizations, particularly companies, raise directly from the general public. This is a mode of financing where individuals or entities provide their money to a business in return for a certain interest rate or the promise of repayment after a specified period. Public deposits can be more advantageous for organizations as they often come with fewer restrictions compared to bank loans, and they typically incur lower costs.

In contrast, private deposits would refer to funds sourced from select individuals or institutional investors, while bank deposits pertain to funds placed with financial institutions. Hence, in the context of the question, "public deposits" appropriately defines deposits raised directly from the public by organizations.

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