Question : Which of the following is a feature of a savings bank account?
Option 1: Low interest rate
Option 2: Limited number of transactions allowed per month
Option 3: High minimum balance requirement
Option 4: High liquidity
Correct Answer: High liquidity
Solution : The correct answer is (d). High liquidity
A savings bank account is designed to provide individuals with a safe place to deposit their savings while maintaining easy access to their funds. High liquidity means that the funds in a savings bank account can be readily accessed and withdrawn by the account holder whenever needed without any significant restrictions or penalties. This makes savings bank accounts a popular choice for individuals to park their emergency funds or maintain liquid savings for day-to-day expenses.
