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

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

One can deposit and withdraw small or big amount of money whenever they like in ________ account.

  1. fixed deposit

  2. recurring deposit

  3. saving deposit

  4. current deposit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In savings account, account holders can make saving deposits where they can deposit and withdraw small or big amount of money whenever they like.

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

Which deposit will give assure of return for your investment?

  1. saving deposit

  2. fixed deposit

  3. current deposit

  4. recurring deposit
Reveal answer Fill a bubble to check yourself
B Correct answer
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. 

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

A _______ encourages savings habit among salary earners as well as the ones who have fixed income.

  1. saving account

  2. fixed account

  3. recurring account

  4. current account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Savings account, as the name says pretty clearly, encourages a saving habit among the account holder, especially those with fixed salary income.

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

You can use a _______ to save your money and earn interest on it at the same time.

  1. savings account

  2. fixed deposit account

  3. recurring deposit account

  4. current bank account
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

$\Rightarrow$   You can use a $savings\,account$ to save your money and earn interest on it at the same time.

$\Rightarrow$   Savings accounts pay interest on money in your accounts. As a result, your bank will make small additions to your account, typically every month.
$\Rightarrow$   The interest rate depends on economic conditions and your bank's desire to compete with other banks.

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

In which of the following does the time period is fixed at the time of opening the account?

  1. Savings account

  2. Current account

  3. Fixed deposit account

  4. Recurring deposit account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In a Fixed deposit account, the time period is fixed at the time of opening the account. 

A fixed deposit account is an investment account and a type of savings account in which money is deposited for a stated period of time and a fixed interest rate is paid at the end of that period.

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

________ is maintained by depositors who wish to put away a part of their saving to copy with future needs which also helps them to earn an income on their saving.

  1. recurring deposit account

  2. fixed deposit account

  3. savings bank account

  4. current bank account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Saving bank account is maintained by depositors who wish to put away a part of their saving to copy with future needs which also helps them to earn an income on their saving.

So correct answer will be option C

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

State the following statement is True or False
In fixed deposit account ,bank does not provide interest

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In fixed deposit account, the bank provides interest. The rate of interest may vary as per amount, period and bank to bank.

So, its a false statement.

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

_______ account is opened by the people with limited income.

  1. current account

  2. fixed account

  3. recurring account

  4. savings bank
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Savings bank account are the accounts opened by depositors with fixed income or salary earners. It helps people with limited income to manage savings and encourage them to save monthly.