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?

Small Savings Account

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Current Account

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Term Deposit Account

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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 This amount cannot be withdrawn for a specified period of time.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.

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