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

Bank allow the prematurity of fixed deposits. Then they usually collect penal of interest on _____ for the premature withdrawal of fixed deposits.

  1. principal

  2. maturity amount

  3. rate of interest

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

Bank allow the prematurity of fixed deposits. Then they usually collect penal of interest on rate of interest for the premature withdrawal of fixed deposits.

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

Portfolio management is a __________ function of a bank.

  1. secondary

  2. primary

  3. mandatory

  4. non-mandatory
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Portfolio management is a secondary function of a bank.
The banks also undertakes to purchase and sell the shares and debentures on behalf of the clients and accordingly debits or credits the account. This facility is called portfolio management.

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

The money deposited in this account can not be withdrawn before the expiry of period is called

  1. current deposit account

  2. savings deposit account

  3. recurring deposit account

  4. fixed deposit account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The money deposited in this account can not be withdrawn before the expiry of period is called fixed deposit account.

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

The purpose of a _______ is to accumulate funds, there is no such restriction on deposits or incoming transfers.

  1. recurring deposit

  2. fixed deposit

  3. savings account

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

A saving account is an account in which account holder can earn a modest interest on the money he/she keeps  in a bank or other financial institution. There is no such restrictions on deposits of money. Money can be deposited as well as withdrawn at any time.
Thus, option C is correct.

Option A and B are not correct as these are deposited for certain time period and and  thus there is a restriction to withdraw money before the fixed period..

Option D is not correct as it is not used to accumulate money.