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SS1: ECONOMICS - 3RD TERM

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  1. Mining | Week 1
    3 Topics
    |
    1 Quiz
  2. Financial Institution I | Week 2
    7 Topics
    |
    1 Quiz
  3. Financial Institutions II | Week 3
    5 Topics
    |
    1 Quiz
  4. Financial Institutions III | Week 4
    5 Topics
    |
    1 Quiz
  5. Business Organisation | Week 5
    3 Topics
  6. Money | Week 6
    5 Topics
    |
    1 Quiz
  7. Channels of Distribution I | Week 7
    5 Topics
    |
    1 Quiz
  8. Channels of Distribution II | Week 8
    6 Topics
    |
    1 Quiz
  9. Business Finance | Week 9
    7 Topics
    |
    1 Quiz



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There are three types of accounts used in recording customers’ deposits.

They are current, deposit and savings accounts.

Current Account:

The current account is also called a demand deposit account. It is a type of account that businessmen and organisations commonly use for their financial transactions in the bank. A cheque book is given to the customers when this account is opened to facilitate withdrawals.

Holders of current accounts are not entitled to interest but are charged a commission by the bank.

Savings Account:

This is the most common form of a bank account. It encourages low-income earners to develop saving habits. A passbook is used to operate this type of account. Savings account holders are paid interest for keeping their money in the bank. Frequent withdrawals may not attract interest.

Fixed Deposit Account:

A fixed deposit account is opened by a customer having excess liquidity. Money or part of the excess liquidity is paid into this account for a fixed or specified period of time in order to earn interest. Holders are entitled to higher interest than savings account holders.

Fixed deposits are withdrawn at an agreed time and customers can withdraw subject to seven days of notice.

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