Question

The purpose of a _______ is to accumulate funds, there is no such restriction on deposits or incoming transfers.

• A. recurring deposit
• B. fixed deposit
• C. savings account
• D. current account

Answer 1

Answer: (C)

savings account

A saving account is an account in which account holder can earn a modest interest on the money he/she keeps in a bank or other financial institution. There is no such restrictions on deposits of money. Money can be deposited as well as withdrawn at any time.
Thus, option C is correct.
Option A and B are not correct as these are deposited for certain time period and and thus there is a restriction to withdraw money before the fixed period..
Option D is not correct as it is not used to accumulate money.