Question

Select the most appropriate alternatives from those given below :

A fixed amount is deposited for a fixed period in ________ deposit account.
a) current
b) savings
c) fixed
d) recurring.

Answer 1

A fixed deposit is deposited for a fixed period in fixed deposit account.

Explanation:
Fixed Deposit is a type of account that pays a fixed rate of interest until a given maturity date. Fixed deposits can be withdrawn only after a fixed period. In this account, a fixed amount is deposited for a fixed period of time, whereas in a Recurring Deposit Account, a fixed amount is deposited every month for a specified period of time.