Problem in calculating National Income Q5

Q.
a) Discuss three (3) problems in calculating National Income (12 marks)

b) Describe two (2) types of deposits offered by commercial banks (8 marks)

(20 marks, 2017 Q5)

A.
a)
Refer earlier post on

"Problems in calculating National Income".

b) 2 types of deposits

  1. Fixed Deposit
  2. Savings

A deposit account is a savings account, current account or any other type of bank account that allows money to be deposited and withdrawn by the account holder.

4 of the general types are listed below:
known as "current accounts" in the Commonwealth and "checking accounts" in the United StatesA deposit account for the purpose of securely and quickly providing frequent access to funds on demand, through various different channels. Because money is available on demand, these accounts are also referred to as "demand accounts" or "demand deposit accounts", except in the case of NOW Accounts, which are rare checking accounts that require a 7-day notice before withdrawals.
A deposit account that pays interest at money market rates, and for which no notice or very short notice is required for withdrawals. In the United States, they are similar checking accounts in that they offer check-writing privileges and instant access but they are subject to the same regulations as savings accounts, including monthly transaction limits.
Savings account 'Savings'
Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque or using a debit card at a point of sale), although cash can be withdrawn from these accounts at an automated teller machine. While they are not as convenient to use as checking accounts, these accounts generally offer consumers a higher rate of interest than a transactional account and will usually be linked to a transactional account.
Time deposit, 'Fixed D'

also known as a certificate of deposit in the United StatesA money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time and will incur penalties for withdrawals before a certain date. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the higher the interest rate offered by the bank.

Ref:
https://en.wikipedia.org/wiki/Deposit_account