Multiple choice

Fixed deposits are offered with

  1. fixed interest rates

  2. floating interest rates

  3. fixed and floating interest rates

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Fixed deposits offer fixed interest rates that remain constant throughout the deposit tenure. The rate is locked in at the time of deposit and doesn't fluctuate with market conditions, distinguishing FDs from floating rate instruments.

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