Question

What is one of the prime reasons for the historical popularity of bank Fixed Deposits (FDs)?

a.

Guaranteed returns

b.

High capital protection

c.

Lack of knowledge about other products

d.

Short-term investment horizon

Posted under IC 89 Management Accounting

Answer: (c).Lack of knowledge about other products Explanation:One of the prime reasons for the historical popularity of bank FDs is the lack of knowledge among investors about other products that may offer comparable or better returns in some respects.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is one of the prime reasons for the historical popularity of bank Fixed Deposits (FDs)?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the primary objective of Fixed Maturity Plans (FMPs)?

View solution

Q. How do Fixed Maturity Plans (FMPs) differ from traditional Fixed Deposits (FDs)?

View solution

Q. What is the tax treatment of Fixed Maturity Plans (FMPs)?

View solution

Q. Why are short-term debt funds considered a good option for stable and higher returns?

View solution

Q. What is a key consideration for investors in Fixed Maturity Plans (FMPs)?

View solution

Q. Why are returns in Fixed Maturity Plans (FMPs) considered indicative and not assured?

View solution

Q. What is a characteristic of Fixed Maturity Plans (FMPs) that makes them suitable for low-risk attractive yield investments?

View solution

Q. How do Fixed Maturity Plans (FMPs) compare to Fixed Deposits (FDs) in terms of returns?

View solution

Q. What tax advantage do Fixed Maturity Plans (FMPs) offer over Fixed Deposits (FDs)?

View solution

Q. For what duration of Fixed Maturity Plans (FMPs) does indexation benefit apply?

View solution

Q. What is the double indexation benefit associated with Fixed Maturity Plans (FMPs)?

View solution

Q. How can losses incurred in Fixed Maturity Plans (FMPs) after double indexation be treated?

View solution

Q. What types of instruments do Fixed Maturity Plans (FMPs) typically invest in?

View solution

Q. In India, what is the general type of Fixed Maturity Plans (FMPs)?

View solution

Q. What is the maturity range of Fixed Maturity Plans (FMPs)?

View solution

Q. When considering Fixed Income Instruments as an asset class, what factors should influence the investor's choice of product?

View solution

Q. What is recommended for investors looking for a regular stream of income and capital preservation when investing in debt?

View solution

Q. What are the four important factors that investors need to consider in their investment decisions for fixed-income options?

View solution

Q. What is emphasized as an essential aspect when developing a fixed-income portfolio, along with safety and security?

View solution

Q. During times of uncertainty in the direction of interest rates, what is suggested as a low-risk opportunity for investors in the fixed-income market?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

IC85 Reinsurance Management

Gear up for success in the Insurance Institute of India (III) examination with IC85...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...