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प्रश्न
Compare the rate of interest given to such an account to that of a Current Account and a Fixed Deposit.
Compare the interest rates as given by the bank on saving, current and fixed deposits.
उत्तर
- Deposits in saving and current accounts are payable by the bank on demand.
- Saving account deposits carry low interest rate, whereas no interest is paid on current account deposits.
- But fixed deposits earn high interest rates, as they are deposited for a specified fixed period of time. Bank can lend this money to others.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Explain briefly the five agency functions of a commercial bank.
Name one commercial bank in India.
______ deposits earn very low rate of interest on it.
Explain the features of savings bank account.
Differentiate between Savings Deposit and Current Deposit.
What is creation of credit?
Which of these are known as term/time deposits?
The current account holders are not given interest on their deposits. The reason being:
Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I.
| Column I | Column II | ||
| A. | Function of Commercial bank | (i) | Initial deposits × `1/"LRR"` |
| B. | Money multiplier | (ii) | The difference between market value of the security and the amount of loan. |
| C. | Total money creation | (iii) | Acceptance of deposits |
| D. | Margin requirement | (iv) | `1/"LRR"` |
Give two advantages of depositing money with commercial banks.
