Which of the following is true about the sinking fund ? Option 1: It does not have any specific purpose. Option 2: Any amount, any time can be deposited in the sinking fund. Option 3: it can be used in any emergency. Option 4: It is a fixed term account.

The answer is 'It is a fixed term account.'. View full solution:

CUET Mathematics - Which of the following is true about the sinking fund ? | PYQs + Solutions

CUET Mathematics 2026 29th May Shift 2

Applied Mathematics

Easy

applied

It does not have any specific purpose.

Any amount, any time can be deposited in the sinking fund.

it can be used in any emergency.

It is a fixed term account.

✅ Correct Option: 4