Question

State the following statement is True or False:

A deposit which is kept for a fixed period in a bank without making any withdrawals out of it is a fixed deposit.

• A. True
• B. False

Answer 1

The correct option is A True

Fixed Deposit account is opened for depositing money for a fixed period of time. Withdrawals are usually not permitted till the expiry of the deposit. However, premature withdrawal is allowed following the terms and conditions of the deposit availed.