Question

Match List I with List II
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• A. A - III, B - IV, C - II, D - I
• B. A - IV, B - I, C - II, D - III
• C. A - III, B - I, C - IV, D - II
• D. A - II, B - IV, C - III, D - I

Hint:

- Fixed Deposit = Locked-in period (III)
- Recurring Deposit = Regular monthly deposits (IV)
- Current Account = Unlimited daily transactions (II)

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Commercial banks offer several types of deposit accounts designed to meet the saving, transaction, and investment needs of different consumers.

Step 2: Detailed Explanation:
Let us match each banking term description in List I with its correct account type in List II:
A. Amount deposited cannot be withdrawn before expiry of the period: This describes a Fixed Deposit Account (III), where money is locked in for a specified tenure at a higher, fixed interest rate.
B. Bank pays a certain rate of interest, and helps common people develop the habit of thrift: This describes a Saving Bank Account (I), which encourages small savings among the public while providing basic liquidity and earning interest.
C. The depositor keeps on depositing a specified sum of money every month: This describes a Recurring Deposit Account (IV), which allows depositors to make regular monthly payments over a fixed term.
D. Money may be deposited and withdrawn at any time: This describes a Current Account (II), which offers high liquidity with no limits on the number of daily transactions, commonly used by businesses.
Combining these results in: A-III, B-I, C-IV, D-II.

Step 3: Final Answer:
The correct matching sequence is A-III, B-I, C-IV, and D-II, corresponding to Option (C).