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Fixed Deposit

Banks provide...

Question

Banks provide a higher rate of interest on which of

A

Current account

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B

Fixed deposits for a long period

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C

Saving account

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D

Fixed deposits for a short period

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Solution

The correct option is B
Fixed deposits for a long period

Option b) Fixed deposits for a long period. Money is deposited for a fixed period of time and a fixed rate of interest is paid at the end of time in the fixed deposits.

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Q. Give reasons or explain the following statements:

1. Commercial banks provide agency functions to earn profits.
2. Overdraft facility is provided to current account holders.
3. Saving account deposits are usually opened by salaried class.
4. Rate of interest on fixed deposit is high.

Q. on which asset banks charge a higher rate of interest on loans?

Q. on which deposit the higher rate of interest under commercial banks also give reason

Q. The interest rate on loans is higher than the interest rate that banks offer on deposits.

Q. Read the following statements and choose the correct option.

Assertion (A): The interest rate on loans is higher than a bank's interest rate on deposits.

Reason (R): The bank earns profit out of this margin.

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