What is the typical overdraft limit allowed against a fixed deposit? Option: 25% of the fixed deposit amount, 10% of the fixed deposit amount, 50% of the fixed deposit amount, 75% of the fixed deposit amount

<< Back

Hi

Show Ans

i

What is the typical overdraft limit allowed against a fixed deposit?

25% of the fixed deposit amount

10% of the fixed deposit amount

50% of the fixed deposit amount

75% of the fixed deposit amount

<< Back

Hi

Show Ans

i

What is the significance of Deposit Insurance for Fixed Deposit holders?

It provides coverage up to a certain limit in case of bank failures

It guarantees high returns on FD investments

It ensures tax exemption on interest earned from FDs

It protects against losses due to market volatility

<< Back

Hi

Show Ans

i

What are fixed deposits considered in terms of risk in India?

Extremely low-risk investments

High-risk investments

Investments with unpredictable risk

Medium-risk investments

<< Back

Hi

Show Ans

i

How does the interest payout mechanism work for Fixed Deposits?

Interest can be received on a fixed schedule (monthly, quarterly, annually)

Interest is directly reinvested into the stock market

Interest is only paid at maturity

Interest is determined by market fluctuations

<< Back

Hi

Show Ans

i

How does the taxation policy apply to interest earned on Fixed Deposits for individuals below 60 years of age in India?

Tax liability is determined by the individual's investment portfolio

Interest is taxed at a flat rate regardless of the amount

Interest income is entirely tax-free

TDS (Tax Deducted at Source) may apply if interest exceeds a certain limit

<< Back

Hi

Show Ans

i

What is the maximum amount of coverage provided by deposit insurance for individual depositors in a single bank?

Rs. 3 lakhs

Rs. 2 lakhs

Rs. 1 lakh

Rs. 5 lakhs