Module: General Practice
Q2: What is the definition of a "Reinvestment Deposit"?
✅ Correct Answer: C
Reinvestment deposits are defined as those where the interest earned is reinvested back into the deposit at the same contracted rate until the deposit matures.
This is a key concept when calculating yield under Interest Rates on Deposits, as the interest effectively compounds over the tenure.
This is a key concept when calculating yield under Interest Rates on Deposits, as the interest effectively compounds over the tenure.