Q13 of 25 Page 1

Define ‘‘demand deposits’’.

Demand deposit is a type of account that can be accessed as per the demand. It has greater liquidity than the term deposits. It also pays a lower interest rate. Here the depositors can access their money any time they want without any penalty.

While term deposit is completely reverse of it. The money gets locked in for a fixed tenure but has higher interest rates.


More from this chapter

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12

(a) Why is the short run Marginal Cost curve U-shaped ?

(b) Explain the relation between Average Cost (AC) curve and Marginal Cost (MC) curve using the diagram.


 12

Note: The following question is for the Visually Impaired Candidates only, in lieu of Q. No. 12(b) :

Explain the relation between Average Cost (AC) and Marginal Cost (MC).


 14

State any two examples of non-tax revenue receipts of the government.

OR


Dividends received from Public Sector Undertakings (PSUs) are a part of the government’s ____________. (Choose the correct alternative)


A. Non-tax Revenue Receipts


B. Tax Receipts


C. Capital Receipts


D. Capital Expenditure


 15

State the role played by the central bank as the ‘‘lender of last resort’’.