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Question
Which of these are known as term/time deposits?
Options
Fixed deposits and current accounts
Current account and savings account
Recurring deposits and fixed deposits
Recurring deposits and savings account
Solution
Recurring deposits and fixed deposits
Explanation:
Term/Time Deposits are deposits made for a particular period of time that cannot be withdrawn before the term ends without paying penalties. There are two types of term deposits:
- Fixed Deposits (FDs)
- Recurring Deposits (RDs)
Current and savings accounts are not term deposits; instead, they are called demand deposits, which allow the account holder to withdraw funds at any time.
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