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Your results are here!! for" Recurring Deposit (RD) "
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Question 1 of 10
1. Question
What is a Recurring Deposit (RD)?
Correct
An RD is a type of term deposit offered by Indian banks and India Post in which individuals deposit a fixed amount every month and earn interest.
Incorrect
An RD is a type of term deposit offered by Indian banks and India Post in which individuals deposit a fixed amount every month and earn interest.
Unattempted
An RD is a type of term deposit offered by Indian banks and India Post in which individuals deposit a fixed amount every month and earn interest.
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Question 2 of 10
2. Question
How are deposits generally made into an RD account?
Correct
Individuals deposit a fixed amount every month, similar to paying installments.
Incorrect
Individuals deposit a fixed amount every month, similar to paying installments.
Unattempted
Individuals deposit a fixed amount every month, similar to paying installments.
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Question 3 of 10
3. Question
What is the typical tenure range of RD accounts mentioned in the passage?
Correct
The passage states that RD accounts typically have a tenure ranging from 6 months to 10 years, depending on the bank‘s terms.
Incorrect
The passage states that RD accounts typically have a tenure ranging from 6 months to 10 years, depending on the bank‘s terms.
Unattempted
The passage states that RD accounts typically have a tenure ranging from 6 months to 10 years, depending on the bank‘s terms.
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Question 4 of 10
4. Question
How is interest on RDs compounded according to the passage?
Correct
The passage states that RD interest is compounded quarterly.
Incorrect
The passage states that RD interest is compounded quarterly.
Unattempted
The passage states that RD interest is compounded quarterly.
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Question 5 of 10
5. Question
What can standing instructions do for an RD account?
Correct
Standing instructions can automatically debit the specified monthly amount from the customer‘s savings or current account.
Incorrect
Standing instructions can automatically debit the specified monthly amount from the customer‘s savings or current account.
Unattempted
Standing instructions can automatically debit the specified monthly amount from the customer‘s savings or current account.
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Question 6 of 10
6. Question
What is the effect of delaying an RD monthly installment?
Correct
A predefined penalty may apply to delayed installments, reducing the final maturity value.
Incorrect
A predefined penalty may apply to delayed installments, reducing the final maturity value.
Unattempted
A predefined penalty may apply to delayed installments, reducing the final maturity value.
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Question 7 of 10
7. Question
What loan amount may many banks offer against an RD according to the passage?
Correct
Many banks offer loans against an RD of up to 80-90% of its value.
Incorrect
Many banks offer loans against an RD of up to 80-90% of its value.
Unattempted
Many banks offer loans against an RD of up to 80-90% of its value.
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Question 8 of 10
8. Question
In the stated RD interest formula, what does P represent?
Correct
In I = P × n(n + 1) × r / 2400, P represents the monthly deposit.
Incorrect
In I = P × n(n + 1) × r / 2400, P represents the monthly deposit.
Unattempted
In I = P × n(n + 1) × r / 2400, P represents the monthly deposit.
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Question 9 of 10
9. Question
According to the passage, when is TDS deducted from RD interest?
Correct
The passage states that if RD interest exceeds ₹40,000 per year, 10% TDS is deducted.
Incorrect
The passage states that if RD interest exceeds ₹40,000 per year, 10% TDS is deducted.
Unattempted
The passage states that if RD interest exceeds ₹40,000 per year, 10% TDS is deducted.
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Question 10 of 10
10. Question
How is interest earned from an RD treated for income tax according to the passage?
Correct
RD interest is taxable under the depositor‘s tax slab.
Incorrect
RD interest is taxable under the depositor‘s tax slab.
Unattempted
RD interest is taxable under the depositor‘s tax slab.