What is a fixed deposit?

Q10. What is a fixed deposit? A fixed deposit is money invested for a fixed period at a fixed interest rate. Fixed deposit: Money deposited in a bank for a specific period at a predetermined interest rate. Fixed deposit is money invested for a fixed period at a fixed rate. Q11. What is a recurring deposit? A recurring deposit is monthly savings with interest earned on regular deposits. Recurring deposit: A savings account where a fixed amount is deposited every month for a fixed tenure, earning compound interest. Recurring deposit is monthly saving with interest. Q12. What is credit creation? Credit creation by banks is the process of creating money through loans. Credit creation: The ability of commercial banks to create credit or money by expanding deposits through lending under fractional reserve system. Credit creation is the process of creating money by banks. Q13. What is a cheque? A cheque is a written order to the bank to pay a specified amount. Cheque: A written document directing a bank to pay a specified sum from the drawer's account to the named payee or bearer. A cheque is a written order to the bank to pay. Q14. What is a demand draft? Demand draft is a prepaid money transfer instrument. Demand draft: A prepaid negotiable instrument issued by a bank on behalf of a customer for safe transfer of funds. Demand draft is a prepaid money transfer. Q15. What is overdraft? Overdraft allows withdrawal more than the account balance. Overdraft: A credit facility allowing account holders to withdraw or transfer more than the available balance up to a limit, with interest charged on the overdrawn amount. Overdraft is withdrawal more than the balance.