Question : Which of the following is a feature of a savings account?
Option 1: High interest rate
Option 2: Fixed maturity period
Option 3: Withdrawals allowed at any time
Option 4: No limit on withdrawals
Correct Answer: Withdrawals allowed at any time
Solution : The correct answer is (c). Transferable
A certificate of deposit is a fixed-term financial instrument issued by banks or financial institutions to individuals or entities. It represents a deposit that the depositor makes with the institution for a specified period at a fixed interest rate. CDs are commonly used as a low-risk investment option.
Certificates of deposit can be transferred to another party before their maturity, subject to the terms and conditions set by the issuing institution. This transferability allows investors to sell or transfer their CDs to other individuals or entities in the secondary market.
Question : Which of the following is a feature of a current account?
Question : Which of the following is a feature of a fixed deposit account?
Option 1: Flexible maturity period
Option 2: Withdrawals allowed at any time
Option 3: Low interest rate
Option 4: Penalty for premature withdrawal
Option 2: No limit on the number of transactions allowed per month
Option 3: Fixed maturity period
Option 4: Low minimum balance requirement
Question : Which of the following is a feature of a treasury bill?
Option 1: High credit risk
Option 2: High interest rate
Option 4: No liquidity risk
Question : Which of the following is a feature of a commercial paper?
Option 1: Low liquidity
Option 2: High credit rating requirement
Option 3: High interest rate
Option 4: No fixed maturity period
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