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4. Cost of public deposits is generally lower than the cost of borrowings
from ___________;

(a) Preference shares
(b) Debentures
(c) Bonds
(d) Banks Financial institutions

5. The borrower is required to provide some security or create a charge on
the assets of the firm before _________by a commercial bank

(a) A loan is sanctioned
(b) Starting of a company
(c) Accepting the deposits
(d) None of the above

Home Assignment.

1- Mark questions.

1. What is main function of commercial bank?
2. What is the maturity period for commercial paper?
3. What is meant by public deposits?
4. Why the financial institutions are called as development banks.
5. What are the services provided by the financial institutions except the
industrial development of a country?

3 to 4 marks questions.

1. Write short note on financial institutions.
2. Write the limitations of commercial bank.

5 to 6 marks questions.

1. Explain merits and demerits of public deposits.
2. What is meant by commercial paper, explain its merits and demerits?

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