10 Questions
Which type of account does not earn interest?
Current account
What is the key benefit of a fixed deposit account?
Higher interest rate than savings accounts
What is the purpose of a recurring deposit?
To encourage regular savings
Who issues currency in India?
Reserve Bank of India
What happens when banks allow account holders to withdraw more than their account balance?
It is known as an overdraft
What does a current account not provide to account holders?
Interest on deposits
Why do business owners open current accounts?
To meet the requirement for cash deposits and withdrawals
What happens when a depositor plans to deposit a fixed amount per month for a specific duration?
The fixed amount is returned to the depositor at the end of the duration
What is the main difference between fixed deposit and recurring deposit accounts?
Fixed deposit requires regular monthly deposits while recurring deposit allows lump sum deposits.
What is the purpose of an overdraft facility?
To allow withdrawal of more than the account balance
Test your knowledge of commercial banks and their different types including public sector banks, private banks, and foreign banks. Learn about the services offered by commercial banks and their role in the economy.
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