Question

Hello, I have some finance banking questions here.

A type of deposit product that banks will encourage the customer to purchase whose primary goal is to save rather than make payments is:

1. Checking account.
2. Non-interest bearing deposit.
3. Non-transaction deposit.
4. Either (a) or (b).
   

Non-transaction deposits are less costly to process because:

1. They have less transaction activity.
2. Customers today use smart phones to perform transactions so there is no cost to the institutions to process any of these transactions.
3. They are short-term.
4. Both (a) and (b).

Answer 1

QUESTION 1

option (c) i.e non transaction deposits is the correct answer.

Non transaction deposit are those deposits that cannot to be withdrawn or transferred to third parties. Non-transaction deposits include time deposits and savings deposits. Non-transaction deposits restricts depositor to transact using them.

QUESTION 2

option (d) i.e both A and B is the correct answer.

Non-transaction deposits restricts the depositor to transact using them. Such restrictions include transaction limitations and/or transaction fees that act to prevent the deposit account from being used as a primary transactional account.

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