GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When bank accept a fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known as____?
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Bond
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Mortgage
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Term deposit
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Demand Deposit
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Explanation:
Detailed explanation-1: -A term deposit is a type of deposit account held at a financial institution where money is locked up for some set period of time. Term deposits are usually short-term deposits with maturities ranging from one month to a few years.
Detailed explanation-2: -The money deposited in this account can not be withdrawn before the expiry of period is called fixed deposit account.
Detailed explanation-3: -A term deposit is an account that locks away and invests your money for a fixed period of time, usually between one month and five years. In return, you can earn a fixed rate of interest on your money. Term deposits generally suit people who are looking for a lower-risk investment and want certainty of returns.
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