Question

Statement (1): Primary deposits are the initial deposits made by the depositors in the bank.

Statement (2): Secondary deposits take place in all types of account except fixed deposit account.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true but Statement 2 is false.

• Statement 2 is true but Statement 1 is false.

Answer 1

Statement 1 is true but Statement 2 is false.

Explanation:

• Statement (1): Primary deposits are the cash reserves brought into a commercial bank by individuals who physically deposit their money.
• Statement (2): Secondary deposits are strictly derived balances generated by credit or loans granted by banks. They are not related to regular personal account classifications such as current or savings operations.