Question

Match the correct pairs:

	Group “A”		Group “B”
a.	RBI	1	Recurring deposit account
b.	Overdraft	2	12 hours service
c.	Saving account	3	Withdrawals after fixed period of time
d.	ATM	4	Central Bank
e.	Fixed deposit account	5	Current Account
		6	Salaried people
		7	24 hours service
		8	Commercial bank
		9	Cash credit
		10	Withdrawal before fixed period of time.

Answer 1

	Group “A”		Group “B”
a.	RBI	4	Central Bank
b.	Overdraft	5	Current Account
c.	Saving account	6	Salaried people
d.	ATM	7	24 hours service
e.	Fixed deposit account	10	Withdrawal after a fixed period of time

* In the book, for part (e), there is a mistake in the item 10. enlisted in Group B. It cannot be 'withdrawal before'. Indeed, it should
 be withdrawal after.
a) The Reserve Bank of India (RBI) is the central bank of India. It is the apex bank that supervises the monetary and banking
system of India. It is responsible for maintaining the economic stability of the country. It prints notes and lays down rules and
regulations for commercial banks.
b) Overdraft facility is given to current account holders. It is a temporary arrangement whereby a customer is allowed to
withdraw amount more than that prevailing in his/her account. For the overdraft facility, the bank charges interest on the amount
overdrawn.
c) Savings accounts are basically meant for people who have fixed incomes (like salaried people). This type of account
encourages the habit of saving among people.
d) An automatic teller machine (ATM) is an electronic machine that offers convenience to customers, as they can deposit or
withdraw money from their accounts anytime without having the need to visit the branch of the bank. ATMs provides 24×7
service facility.
e) A fixed deposit account is an account in which deposits are kept for a fixed period of time. Also, deposits cannot be
withdrawn from this account before maturity. More the time period, greater is the interest rate earned. The rate of interest is
decided by the RBI.