Question

Current deposit accounts are also called ---.

• A. fixed liabilities
• B. savings deposits
• C. demand liabilities
• D. investment accounts

Answer 1

Answer:

C. demand liabilities

Current Deposits:

• Also known as running account, active account, demand deposit etc.

• This account is meant for businessmen, traders etc.

• A customer is allowed to draw cheque and withdraw money time on demand.

• Therefore these accounts are called demand liabilities 

• These accounts are intended for businessmen, joint stock companies, institutions etc. 

• Overdraft facilities are given for this account is Rs 10000 

• Banks provide no interest for this account.