Question

Deposits withdrawals after the expiry of a period are known as _______.

• A. time deposits
• B. fixed deposits
• C. demand deposits
• D. both a and b

Answer 1

The correct option is D both a and b

Time deposits or fixed deposits refers to the deposits with the commercial banks which can be withdrawn after the expiry of a specified period of time. In other words, in this type of deposits, the account holder has no liberty to withdraw any amount from his account unless the expiry of specified period after which the account holder is paid the full principal as well as accrued interest on it.