Identify and explain the concept : Tina deposited a lumpsum amount of ₹ 50,000 in the bank for a period of one year.
Q.2 (A) (v) Identify and explain the concept : Tina deposited a lumpsum amount of ₹ 50,000 in the bank for a period of one year.
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Answer: Fixed (time) deposit
Concept: Fixed deposit (time deposit) – a function of a commercial bank.
Explanation: Accepting deposits is a primary function of a commercial bank. In a fixed deposit a lump sum amount is deposited for a fixed period (here one year). It cannot normally be withdrawn before maturity, and the bank pays a higher rate of interest than on savings deposits. The longer the period, the higher the rate of interest.
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· 28 Oct 2026
AI-verified · Oct 2026
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