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Question : Which of the following is not a feature of a demand deposit account?

 

Option 1: High interest rate

 

Option 2: Unlimited number of transactions
 

Option 3: No maturity period

 

Option 4: Cheque book facility


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: High interest rate

 


Solution : a). High interest rate

A high interest rate is not a typical feature of a demand deposit account. Demand deposit accounts, such as savings accounts and current accounts, are designed for easy access to funds and daily transactions. They typically offer lower interest rates compared to other types of accounts like fixed deposit accounts or savings certificates. The other options mentioned, including unlimited number of transactions, no maturity period, and cheque book facility, are common features of demand deposit accounts. 

 

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