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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
SLR stands for ______
Name one commercial bank in India.
State one point of difference between Cash Credit and Overdraft.
Explain the features of savings bank account.
Distinguish between:
cash credit and loan.
Differentiate between Savings Deposit and Current Deposit.
A ______ is meant for day to day transactions.
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"` |
What is meant by demand deposits?
Explain three important functions of a commercial bank.
