Question

    Which statement is incorrectly related to Recurring

    Deposit?
    A Fixed monthly investments Correct Answer Incorrect Answer
    B Flexible interest rates Correct Answer Incorrect Answer
    C Fixed tenure Correct Answer Incorrect Answer
    D Premature withdrawal allowed Correct Answer Incorrect Answer
    E Interest earned is taxable Correct Answer Incorrect Answer

    Solution

    Recurring deposits (RDs) are fixed, meaning the interest rate is locked in when the account is opened and won't change even if interest rates fluctuate during the account's term. This makes RDs a good option for conservative investors who want to preserve their capital and avoid market risks. 

    Practice Next
    More Previous Year Paper Questions

    Relevant for Exams:

    ask-question