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.
Detailed explanation-2: -Savings accounts earn interest at a rate of around 4%, while there is no such earning from a Current Account. A Current Account is actually a no interest-bearing deposit account.
Detailed explanation-3: -Current account does not earn any interest on the money deposited. It is opened by businesses who have a higher number of transactions. There is no restriction on the number of times deposits or withdrawals that can be made.
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.
Detailed explanation-5: -Currents accounts do not earn any interest due to the fluidity they offer. Current accounts usually do not carry a limit on the number of transactions which can be made.