Module A PPB Unit 5: Operational Aspects Of Deposit Accounts

What role do deposits play in a bank's basic functions?

• Facilitating online purchases
• Funding branch expansion
• Financing government projects
• Generating profits

Which type of account does not earn interest?

• Savings account
• Fixed deposit account
• Current account
• Recurring deposit account

Who is not eligible to open a current account?

• Minors
• Pardanashin women
• Illiterate persons
• Blind persons

What is a common restriction on the balance in a current account?

• Minimum balance requirement
• Maximum balance limit
• Minimum and maximum balance
• No restrictions

How many transactions are typically allowed in a current account within a specific period?

• Unlimited
• Up to 10
• Up to 5
• Up to 20

What differentiates the operation of individual accounts from legal entity accounts?

• Operation by authorized signatories
• Operation by joint holders
• Operation by the account holder
• Operation by the bank

What type of cheques can be debited from current accounts?

• Singly or jointly drawn
• Only drawn by account holder
• Only drawn by authorized user
• Only government cheques

What can banks debit accounts for, based on customer authorization?

• Charges, interest, etc.
• Interest rates
• Loans and credit facilities
• ATM withdrawals

Which feature is not associated with savings accounts?

• High minimum balance
• Periodical review
• Nominee facility
• Annuity deposits

When is a savings account considered inoperative or dormant?

• No transactions for over two years
• No operations for one year
• No withdrawals for two years
• No deposits for one year