In commercial banks, saving and current account deposits are held by the public. There are other deposits like fixed deposits, having a fixed period to maturity and are referred to as _______________.
In commercial banks, saving and current account deposits are held by the public. There are other deposits like fixed deposits, having a fixed period to maturity and are referred to as _______________.
Solution
✅ Correct Option: 2
Deposits with a fixed period to maturity, such as fixed deposits, are called time deposits. Savings and current account deposits, withdrawable on demand, are demand deposits. Hence the answer is time deposits.
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