Your friend gets Rs 10000 from his grand parents. He/she wants to invest this amount in a bank in such a way that he/she need not withdraw the amount partly or wholly for two years. What kind of account should he/she open in a bank?
A
Small Savings Account
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B
Current Account
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C
Term Deposit Account
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D
Demat Account
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Solution
The correct option is C Term Deposit Account Term deposit account allows an investor to keep his money for a specified period of time. This amount cannot be withdrawn for a specified period of time. Therefore, when a friend gets Rs 10000 from his grandparents, he should open term deposit account so that he need not withdraw the amount partly or wholly for two years.