Class 11 Finance Important Chapter 11 Different Types of Bank Accounts

Class 11 Finance Important Chapter 11 Different Types of Bank Accounts Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Finance Important Solutions and select need one. AHSEC Class 11 Finance Additional Notes English Medium Download PDF. HS 1st Year Finance Important Solutions in English.

Class 11 Finance Important Chapter 11 Different Types of Bank Accounts

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Banking Important Notes in English for All Chapters, You can practice these here.

Different Types of Bank Accounts

Chapter: 11

IMPORTANT QUESTION AND ANSWER

Answer the Following Question:

1. What is a savings bank account?

Ans: A savings bank account is an account opened by individuals to deposit their savings and earn interest with some restrictions on withdrawals.

2. Who can open a current account?

Ans: Current accounts can be opened by individuals, businessmen, firms, companies, but minors are not allowed.

3. What is the main feature of a fixed deposit account?

Ans: Money is deposited for a fixed period with higher interest rates and cannot be withdrawn before maturity without penalty.

4. Explain recurring deposit account.

Ans: A recurring deposit account requires a fixed sum to be deposited regularly for a specified period, encouraging regular savings.

5. What is the purpose of a passbook?

Ans: A passbook records all transactions and the current balance of the account, helping customers track their money.

6. What is the difference between savings and current accounts?

Ans: Savings accounts encourage saving with interest and limited withdrawals; current accounts are for frequent transactions with usually no interest.

7. What documents are required to open a bank account?

Ans: Application form, photographs, identity and address proof, references, PAN number, and specimen signatures.

8. What is a pay-in slip?

Ans: A pay-in slip is a form filled by the customer to deposit money or cheques into their bank account.

Fill in the Blanks:

1. Savings bank accounts pay __________ on deposits.

Ans: Interest.

2. Current accounts are mainly used by __________.

Ans: Businessmen.

3. Fixed deposit accounts pay a __________ rate of interest than savings accounts.

Ans: Higher.

4. The bank issues a __________ to fixed deposit account holders as proof of deposit.

Ans: Fixed Deposit Receipt.

5. An __________ is a document used to deposit cash or cheque into a bank account.

Ans: Pay-in Slip.

Short Notes:

1. Savings Bank Account.

Ans: A savings bank account is designed to encourage individuals, especially those with small to medium incomes, to save money regularly. It offers interest on deposits, though at a lower rate compared to fixed deposits. Withdrawals are allowed but are limited in number and amount to promote saving habits. This account can be opened by individuals, minors (with guardian), clubs, and institutions not engaged in business. The bank provides facilities like passbooks, cheque books, and ATM cards for easy access.

2. Current Deposit Account.

Ans: Current accounts are primarily meant for businessmen, firms, companies, and traders who require frequent transactions. These accounts do not usually earn interest, but they allow unlimited deposits and withdrawals without restrictions. The account holders can also avail overdraft facilities for short-term credit needs. Banks provide cheque books and ATM cards to current account holders. Minors are not allowed to open current accounts.