Question

Identify the type of Bank Account in each of the following cases:
a) It is an account in which the amount is deposited with the bank for a fixed period of time.
b) The main objective of this account is to enable the businessmen to conduct their business transactions smoothly.
c) In this account certain fixed amount is deposited every month for a specified period and the total amount is repaid at the end of the particular fixed period.
d) Under this account individuals can keep their surplus money safe in the banks and also interest on their deposits.​

Answer 1

Answer:

a. Fixed Deposit Account

b. Current Account

c. Recurring Deposit Account

d. Savings Account

Explanation:

a. In a fixed deposit account, a fixed amount is deposited in the bank for a fixed period of time. High rate of interest is provided.

b. In a current account, the facility of bank overdraft is provided. It means that a business man can withdraw more than what is present in his bank account. For example, Mr. A is a businessman has a current account in the bank and Rs. 20,000 are there in his bank account. If he issues a cheque of Rs. 28,000 to someone, his cheque will not be dishonored because of bank overdraft facility.

c. In Recurring Deposit Account, certain fixed amount is deposited every month for a specified period and the total amount is repaid at the end of the particular fixed period.

d. A sivings account can be opened to encourage savings. The rate of interest is lesser than what you get in a fixed deposit acccount.

Answer 2

Identify the type of Bank Account in each of the following cases: -

Fixed Deposit Account:-

In Fixed Deposit Account a fixed amount is deposited in a bank for a certain period. Here, high ra tes of interest is pro vided.

Current Account:-

Current Account is also know as fina ncial account.Current accounts also allows to make payments to credi tors through the cheq ue fac ility offe red by bank.

Recurring Deposit Account:-

It is a type of deposit in which there are fixed ins tall ments that have to be inv ested in an account at fixed intervals of time for a fixed period.

Savings Account:-

Here , you have save your income for your fu t ure ben ifits and rate of interest is lesser.