Question

Which of the following bank accounts is opened by businessmen and why?

• A. Savings bank accounts, as they provide regular interest on deposits
• B. Current bank accounts, as they provide regular interest on deposits
• C. Recurring deposit accounts, as they help in saving for a future date through regular deposits on a monthly basis
• D. Current bank accounts, as they provide unlimited transactions as required in business

Answer 1

The correct option is D Current bank accounts, as they provide unlimited transactions as required in business

Current accounts are generally used by businessmen who have a large number of regular transactions with the bank. Money can be deposited or withdrawn any number of times in a day. Unlike savings accounts, current accounts are not entitled to any interest on deposits, but they are charged service charges or bank charges.