Dhoni: Chapter 5: Types of Bank Accounts - Exercise Answers

📘 Chapter 5: Types of Bank Accounts - Exercise Answers

True or False:

1. We can earn money in savings account in the form of dividend. F (We earn interest, not dividend)
2. We have to maintain minimum balance in savings accounts. T
3. Savings account provides enough flexibility to deposit or withdraw funds. T
4. Current account is used for large number of transactions in a day. T
5. Recurring deposit account is opened for a fixed amount of time. T
6. Fixed deposits are also known as terminal deposits. F (They are called term deposits)
7. SBI offers two types of savings accounts for minors: Pehla Kadam and Pehli Udaan. T

Fill in the blanks:

1. Savings account can be opened in a single individual’s name, or can also be held in a joint name.
2. A bank issues cheque book and ATM card or debit card, when an individual opens savings account.
3. Current account is generally used for running a business.
4. We get no interest in a current account.
5. Current account require high minimum balance.
6. We need to deposit a certain amount of money in recurring deposit account every month.
7. Recurring deposit account is suitable for those who want to save a certain amount of money for a fixed purpose.
8. An account holder can get a loan against the recurring deposit account.
9. A customer can neither add money nor can he withdraw money from the fixed deposit.

Multiple Choice Questions:

1. Interest is what we earn through savings account.
   Ans: a. Interest
2. When we open savings account, bank issues Cheque book and ATM card.
   Ans: c. Option a. and b.
3. The current account is used by people who have large number of transactions in a day.
   Ans: a. current
4. Current accounts are non-interest bearing.
   Ans: a. Current
5. Current account allows unlimited transactions.
   Ans: a. Current
6. In recurring deposit account, we need to deposit a certain amount of money every month.
   Ans: c. recurring deposit
7. We cannot withdraw money from recurring deposit account.
   Ans: c. recurring deposit
8. An account holder can get a loan against the recurring deposit account.
   Ans: c. recurring deposit

Crossword Answers:

Across	Answer
1. Can get loan against it	RECURRING DEPOSIT

Down	Answer
1. Financial Institution	BANK
2. Non-interest bearing account	CURRENT
3. Maintaining minimum amount is required	SAVINGS
4. Also known as fixed deposit	TERM

Note: Yellow highlights = Key terms/Answers | Green = Correct | Red shade = Incorrect with explanation