The Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.

Question

Justify the following statement:

The Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.

Answer 1

• The basic aim of the bank is to pool the excess money to the bank and develop the habit of saving amount people.
• Bank accepts deposits in two forms i.e. Demand Deposits and Time deposits.
• Demand Deposits include – Current Deposits and Savings Deposits.
• Time Deposits includes – Fixed Deposits and Recurring Deposits
• Thus, the Bank accepts two types of deposits from the public i.e. Demand and Time Deposits.