46. Consider the following statements
1. The money under demand deposit is liquid and can be encashed at any time.
2. Recurring account is an example of demand deposit.
3. Funds held under Time deposit are available to the investor at predetermined time.
4. In India, the bank deposits are covered under the insurance scheme.
Which of the above statement(s) is/are correct?
46. Consider the following statements
1. The money under demand deposit is liquid and can be encashed at any time.
2. Recurring account is an example of demand deposit.
3. Funds held under Time deposit are available to the investor at predetermined time.
4. In India, the bank deposits are covered under the insurance scheme.
Which of the above statement(s) is/are correct?
The correct option is B Only 1, 3 and 4
When money is deposited with “tenure”, it cannot be withdrawn before its maturity fixed at a particular time. Such deposits are called “Time deposits” or “Term deposits”. The most common example of Time deposits is “Fixed Deposit”.
If the funds deposited can be withdrawn by the customer (depositor / account holder) at any time without any advanced notice to banks; it is called demand deposit. The money as demand deposit is liquid and can be encashed at any time. There is no fixed term to maturity for Demand Deposits. The demand deposits may or may not pay interest to the depositor. For example, while we get an interest on savings accounts; no interest is paid on current accounts.
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help
people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits
In India, the bank deposits are covered under the insurance scheme provided by Deposit Insurance and Credit Guarantee Corporation (DICGC). When a bank covered by DICGC fails, or undergoes liquidation or is merged with another bank; the DICGC pays the amount due to depositors via the officially appointed liquidator in a time bound manner.
When money is deposited with “tenure”, it cannot be withdrawn before its maturity fixed at a particular time. Such deposits are called “Time deposits” or “Term deposits”. The most common example of Time deposits is “Fixed Deposit”.
If the funds deposited can be withdrawn by the customer (depositor / account holder) at any time without any advanced notice to banks; it is called demand deposit. The money as demand deposit is liquid and can be encashed at any time. There is no fixed term to maturity for Demand Deposits. The demand deposits may or may not pay interest to the depositor. For example, while we get an interest on savings accounts; no interest is paid on current accounts.
Recurring Deposit is a special kind of Term Deposit offered by banks in India which help
people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits
In India, the bank deposits are covered under the insurance scheme provided by Deposit Insurance and Credit Guarantee Corporation (DICGC). When a bank covered by DICGC fails, or undergoes liquidation or is merged with another bank; the DICGC pays the amount due to depositors via the officially appointed liquidator in a time bound manner.
