Question 32
BankingA fixed deposit account is beneficial to its holders because
- A.cheques can be issued to settle huge debts.
- B.customers can become shareholders of the bank.
- C.it attracts higher interest rate.
- 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.