Question

In a Fixed Deposit, how is the interest rate determined?

• A. Based on the depositor's credit score.
• B. Based on the amount of money deposited.
• C. Based on the tenure of the deposit.
• D. Based on the bank's current lending rate.

Answer 1

Answer:

C. Based on the tenure of the deposit.

► Fixed Deposit

• A method of deposit suitable for individuals and institutions to deposit money in a bank for a fixed period of time.

• In fixed deposit method, the interest rate is determined based on the tenure of the deposit.