BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Normally no interest is paid on current deposit accounts.
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Interest is paid on current accounts at the same rate as term deposit accounts.
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The rate of interest on current account and savings account are the same.
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No interest is paid on any deposit by the bank.
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Detailed explanation-1: -Banks do not pay any interest on the current account balances. Rather the account holder pays certain amount each year as operational charge. For the convenience of the account holders, banks also allow withdrawal of amounts in excess of the balance of deposit. The facility is known as overdraft facility.
Detailed explanation-2: -Current account does not earn any interest on the money deposited.
Detailed explanation-3: -The correct answer is Current Account.
Detailed explanation-4: -The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports. A current account deficit indicates that a country is importing more than it is exporting. Hence, Statement 1 is correct.