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Question
From which type of deposits, money can be withdrawn only after the maturity date?
Options
Savings account
Current account
Recurring deposit account
Fixed deposit account
Solution
Fixed deposit account
Explanation:
Fixed Deposits (or time deposits) are those deposits which can be withdrawn only after the expiry of a certain fixed period. Money is deposited for a fixed period of time, which generally ranges between 7 days and 10 years. These deposits carry the highest rate of interest. The longer the period, the higher will be the rate of interest.
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