English

In this type of account, no cheque book is issued to the account holder:

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Question

In this type of account, no cheque book is issued to the account holder:

Options

  • Fixed Deposit account

  • Open account

  • Saving Deposit account

  • Current account

MCQ
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Solution

Fixed Deposit account

Explanation:

A Fixed Deposit (FD) account is a type of time deposit in which a lump sum of money is locked in with the bank for a set period of time at a preset interest rate. Because withdrawals are rigorously restricted until the maturity date, monies cannot be drawn using standard transaction instruments, hence the bank issues a Fixed Deposit Receipt (FDR) to the account holder instead of a check book.

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Types of Bank Deposit Accounts
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Chapter 7: Banking and Bank Transactions - EXERCISES [Page 125]

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Goyal Brothers Prakashan Commercial Applications [English] Class 10 ICSE
Chapter 7 Banking and Bank Transactions
EXERCISES | Q 26. | Page 125
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