why public deposits are termed as "fair weather friends"?
Thumbs up to your answer Sumit.
Sidharth,
Fair weather friends are those persons who are your friends only when the circumstances are pleasant or profitable. The moment the situation changes, their behaviour changes. Similarly, Public deposits is an uncertain form of financing. In situation where the investors feel that company is going to incur losses, they may not be willing to invest (lend) funds and even may resort to withdrawing funds already invested.
Sidharth,
Fair weather friends are those persons who are your friends only when the circumstances are pleasant or profitable. The moment the situation changes, their behaviour changes. Similarly, Public deposits is an uncertain form of financing. In situation where the investors feel that company is going to incur losses, they may not be willing to invest (lend) funds and even may resort to withdrawing funds already invested.