Bird
0
0

Which of the following best describes the liquidity of a recurring deposit account?

medium Q4 of 15
Banking Awareness - Types Of Bank Accounts
Which of the following best describes the liquidity of a recurring deposit account?
AVery high liquidity
BSame as current account
CUnlimited withdrawal allowed
DLimited liquidity with restrictions
Step-by-Step Solution

  1. Step 1: Understand liquidity.

    Liquidity refers to ease of withdrawal.

  2. Step 2: Apply RD rules.

    RD funds are meant to remain till maturity.

  3. Final Answer:

    Limited liquidity with restrictions → Option D

  4. Quick Check:

    RD money is not freely withdrawable ✅
Quick Trick: Regular deposits mean limited liquidity.
Common Mistakes:
  • Assuming RD is as liquid as savings account.
Master "Types Of Bank Accounts" in Banking Awareness

Start learning the concept with an interactive lesson.

Learn

Want More Practice?

15+ quiz questions · All difficulty levels · Free

Free Signup - Practice All Questions
More Banking Awareness Quizzes
Types Of Bank Accounts - Current Account - Quiz 15medium Types Of Bank Accounts - Differentiation-Based Questions (Mixed Pattern) - Quiz 3easy Types Of Bank Accounts - CASA Concept - Quiz 7medium Types Of Bank Accounts - Differentiation-Based Questions (Mixed Pattern) - Quiz 1easy Types Of Bank Accounts - Salary Account & BSBDA - Quiz 6medium Types Of Bank Accounts - Savings Account - Quiz 10hard Types Of Bank Accounts - Savings Account - Quiz 13easy Types Of Bank Accounts - Current Account - Quiz 7medium Types Of Bank Accounts - Salary Account & BSBDA - Quiz 3easy Types Of Bank Accounts - Minor Account & Special Customer Accounts - Quiz 3easy