WAEC Commerce 2014 Question 32

Question 32

Banking

A fixed deposit account is beneficial to its holders because

  1. A.cheques can be issued to settle huge debts.
  2. B.customers can become shareholders of the bank.
  3. C.it attracts higher interest rate.
  4. D.it allows customers to overdraw their accounts.
Show the answer and explanation

Answer: C (it attracts higher interest rate.)

Explanation

Fixed deposits earn higher interest because the money is left for a fixed period.