Banking Awareness - Basics Of Banking & Banking Terminology
Which deposit type is most suitable for parking surplus funds for a fixed period to earn higher interest?
Which deposit type is most suitable for parking surplus funds for a fixed period to earn higher interest?
medium Q4 of 15
Step-by-Step Solution
Step 1: Identify investment intention
The question highlights surplus funds and higher interest.Step 2: Match with deposit type
Fixed deposits lock money for a period and offer higher interest.Final Answer:
Fixed Deposit → Option DQuick Check:
Long lock-in earns higher return in FD ✅
Quick Trick: Surplus + fixed tenure = FD.
Common Mistakes:
- Choosing savings deposit for higher returns.
Master "Basics Of Banking & Banking Terminology" in Banking Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Banking Awareness Quizzes