Tag: introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

Questions Related to introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

________ is guarantee to return a payment.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. savings account

  2. fixed deposit

  3. current account

  4. recurring deposit

Show answer
Correct Option: B
Explanation:

Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. One can deposit a lump sum of money in fixed deposits for a specific period, ranging from 7 days to 10 years. 


Fixed Deposits guarantee a return on investment. 

The ____ transfer funds from one branch to another or from one place to another.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. share

  2. market

  3. bank

  4. business

Show answer
Correct Option: C
Explanation:

The bank transfer funds from one branch to another or from one place to another.

The goods with customers are transferred from stock in shop account at __________ price.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. instalment

  2. hire purchase

  3. profit

  4. financial service

Show answer
Correct Option: B
Explanation:

The goods with customers are transferred from stock in shop account at Hire purchase price.

What type of function is a collection of cheques in a bank?

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. secondary

  2. primary

  3. compulsory

  4. mandatory

Show answer
Correct Option: A
Explanation:

Secondary function is a collection of cheques in a bank.
The bank collects the money of the cheques through clearing section of its customers. The bank also collects money of the bills of exchange.

The ____ collects the money of the cheques through clearing section of its customers.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. share

  2. market

  3. bank

  4. business

Show answer
Correct Option: C
Explanation:

The bank collects the money of the cheques through clearing section of its customers.

Under what type of system purchaser pays the price of the goods in instalments?

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. instalment

  2. hire purchase

  3. profit

  4. financial service

Show answer
Correct Option: B
Explanation:

In hire purchase system, Purchaser pays the price of the goods in installments. 

Fixed deposits can have ______.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. Nomination facility with the permission of Bank Chairman

  2. Nomination facility on the day of closing

  3. Nomination facility

  4. Nomination facility by taking special permission from bank

Show answer
Correct Option: C
Explanation:

Nomination is a facility that enables a fixed deposit account holder to nominate an individual, who can claim the proceeds of the deposit account, post the demise of the original depositor. It is compulsory and doesn't require any permission from the bank.

You can use a _______ to make electronic fund transfers to another account.

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. savings account

  2. fixed account

  3. recurring account

  4. current account

Show answer
Correct Option: A
Explanation:

$\Rightarrow$  You can use a $Savings\, account\,$ to make electronic fund transfer to another account.

$\Rightarrow$  A savings account holds your money in a safe place - your bank or credit union. Instead of carrying cash or keeping money in your home, you can put the funds into savings account for safe keeping.
$\Rightarrow$  Savings accounts offer easy access to you cash (also known as liquidity, or the ability to make a withdrawal easily and quickly). Once you're ready to spend money you can withdraw cash or pay by check, debit card, or an electronic fund transfer.

Which among the following accounts fetch the highest rate of interest?

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. saving deposits

  2. recurring deposits

  3. fixed deposits

  4. current deposits

Show answer
Correct Option: C
Explanation:

Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from $4$ to $7.25$ percent.

When a certain amount is deposited for a fixed period such as six months, one year or longer. Such type of account is

maths banking and taxation types of accounts banks introduction, recurring deposit accounts and calculation of interest on a fixed deposit account

  1. saving account

  2. current account

  3. recurring deposit account

  4. fixed deposit account

Show answer
Correct Option: D
Explanation:

When a certain amount is deposited for a fixed period such as six months, one year or longer. such type of account is fixed deposit account.