Question 7 - MCQ Questions (1 Mark) - Chapter 3 Class 10 Economics - Money and Credit - Economics

A deposit with a bank that can be withdrawn whenever the depositor likes to do so, is termed as:

(A) a demand deposit

(B) a time deposit

(C) a fixed deposit

(D) a legitimate deposit

Answer:

So the correct answer is (A) - a demand deposit.

Explanation

• The deposits in the bank accounts that can be withdrawn on demand are called demand deposits . So this is correct .
• A time deposit is a deposit with the bank with a specific maturity date . So this is not correct .
• A fixed deposit is a deposit with the bank with a fixed tenure or fixed date of maturity. So this is not correct .
• A legitimate deposit is a deposit with the bank that is legitimate . So this is not correct .