alleryStart learning →A demand deposit of Rs 50 lakh is payable on demand. Its fair value is
ANot less than Rs 50 lakh
BAt most Rs 50 lakh
CRs 50 lakh less a discount
DZero until withdrawn
Answer & Solution
Correct answer: A. Not less than Rs 50 lakh
The fair value of a financial liability with a demand feature is not less than the amount payable on demand, discounted from the first date it could be demanded.
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