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      Question

      Which term best describes the penalty for early

      withdrawal from a fixed deposit?
      A Capital gain Correct Answer Incorrect Answer
      B Surrender charge Correct Answer Incorrect Answer
      C Early termination fee Correct Answer Incorrect Answer
      D Amortization cost Correct Answer Incorrect Answer
      E Inflation adjustment Correct Answer Incorrect Answer

      Solution

      Fixed deposits often come with an early termination fee or penalty for withdrawing funds before the maturity date.

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