Question

Identify and explain the concept from the given illustration:

Sara deposited a lump sum amount of ₹25,000 in the State Bank of India for a period of one year.

Answer 1

• Identified concept: Fixed deposit
• Explanation of concept: A fixed deposit is a sort of time deposit in which the saver deposits a particular amount in the form of a deposit in a commercial bank for a set period of time and can withdraw the amount after that period.