Business Studies, asked by kinleywangdi366, 1 year ago

Why is public deposit calles fair weather friend

Answers

Answered by Swetlana123
2

Here I put up your answer:

As a source of raising finance public deposits are unreliable in the period of depression as the public is hesitant to part with the money. At such a time when company requires more funds, the depositors get panicky and withdraw their funds. Thus this system is described as “fair weather friend”.

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