Question

The type of account which a woman entrepreneur would like to open to keep her money safely and yet readily available to her for use is:

• A. Public Provident Fund Account
• B. Fixed Account
• C. Current Account
• D. Recurring Account

Hint:

Choose an account that balances security with flexibility to meet your financial management requirements effectively.

Answer 1

The Correct Option is C

Step 1: Concept
Different bank accounts serve various purposes and offer different features such as accessibility, interest rates, and security.

Step 2: Meaning
A woman entrepreneur would prefer an account that ensures her funds are secure while also being easily accessible for daily transactions or emergencies.

Step 3: Analysis
Public Provident Fund Account (PPF) is a long-term savings scheme with fixed returns. It is not designed for immediate access, making it unsuitable for the needs of a woman entrepreneur who requires quick and easy access to her funds. Fixed Account offers higher interest rates compared to savings accounts but restricts withdrawals for a specified period, which does not align with the need for flexibility in accessing funds. Current Account provides easy and frequent transactions, allowing for swift movement of funds. It is ideal for businesses as it supports regular income and expenditure requirements. Recurring Account involves depositing a fixed amount regularly to earn interest over time. While beneficial for savings, it does not offer immediate access to the full balance.

Step 4: Conclusion
A Current Account best meets the needs of a woman entrepreneur who requires both safety and easy accessibility of her funds. Final Answer: (C)