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Question : Demand deposits include______

Option 1: Saving account deposits with fixed deposits

Option 2: Saving account deposits with current account deposits

Option 3: Current account deposits with fixed deposits

 

Option 4: All types of deposits


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 5th Jan, 2024

Correct Answer: Saving account deposits with current account deposits


Solution : The correct answer is (b) Saving account deposits with current account deposits

Demand deposits refer to funds held in bank accounts that can be withdrawn by the account holder on demand, without any prior notice or restriction. These deposits are typically used for day-to-day transactions and include both saving account deposits and current account deposits. 

Saving accounts are a type of demand deposit account where individuals deposit money for the purpose of saving and earning interest. Current accounts, on the other hand, are also a type of demand deposit account, but they are primarily used for frequent and regular transactions, such as business transactions or personal expenses. Both saving account deposits and current account deposits fall under the category of demand deposits.

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