Identify and explain the concept : Reena deposited a lumpsum amount of ₹ 50,000 in the bank for a period of one year.
Q.2 (A) (iii) Identify and explain the concept : Reena deposited a lumpsum amount of ₹ 50,000 in the bank for a period of one year.
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Answer: Fixed deposit (time deposit)
Concept: Fixed deposit / time deposit. Explanation: A fixed deposit is a lump sum deposited in a bank for a fixed period (e.g. one year). It cannot normally be withdrawn before maturity without a penalty, and it earns a higher rate of interest than a savings deposit. Reena has kept ₹ 50,000 as a lump sum for one year, so it is a fixed deposit.
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· 28 Oct 2026
AI-verified · Oct 2026
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