Types of bank account, - SS2 Commerce Past Questions and Answers - page 1

1

Which type of bank account is suitable for individuals who want to earn interest on their savings?

 

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A

Saving Account

 

B

Fixed Deposit Account

 

C

Current Account

 

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2

What is the primary purpose of a current account?

 

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A

Earning interest on deposits

 

B

Making frequent transactions for businesses

 

C

Long-term savings with a fixed interest rate

 

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3

Which type of bank account offers higher interest rates than a regular saving account?

 

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A

Saving Account

 

B

Current Account

 

C

Fixed Deposit Account

 

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4

Which feature is common to both saving accounts and fixed deposit accounts?

 

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A

Easy access to funds

 

B

Variable interest rates

 

C

Checkbook facility

 

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5

What is the primary difference between a saving account and a fixed deposit account?

 

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A

Interest rates

 

B

Access to funds

 

C

Account duration

 

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6

State one key feature of saving accounts.

 

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7

What happens to the deposited amount at the end of the fixed term in a fixed deposit account?

 

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