Question

What deposits are also known as running account?

• A. Current Deposits
• B. Saving Deposits
• C. Fixed Deposits
• D. Recurring Deposits

Answer 1

Answer:

A. Current Deposits

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.