Question : Which of the following is a feature of a fixed deposit account?
Option 1: Low interest rate
Option 2: Flexible withdrawal option
Option 3: Fixed maturity period
Option 4: No penalty for premature withdrawal
Correct Answer: Fixed maturity period
Solution : The correct answer (c) Fixed maturity period
A fixed maturity period is a feature of a fixed deposit account. In a fixed deposit account, the funds are deposited for a predetermined period, and the account holder agrees to keep the funds in the account until the maturity date. During this period, the account holder generally cannot withdraw the funds without incurring a penalty or losing out on the interest earned. Fixed deposit accounts have a fixed maturity period, which can range from a few months to several years, depending on the terms of the deposit. So, the correct answer is option c). Fixed maturity period.
