Q1. [1] § How is a depository similar to a bank? § Can one dematerialise his debt instruments, mutual fund units, government securities in his demat account?
Hold the fund in ______ account.
- (a) Bank
- (b) Depository
- (c) Demat
- (d) Cash
Previously asked in CBSE board exam
2023 92 Q5 (iv)
Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
The correct answer is (a) Bank.
A bank holds funds in an account, just as a depository holds securities in an account.
Explanation
The source passage directly states the analogy: "Bank — Holds funds in an account." The question is based on the comparison table between a bank and a depository from Chapter 6. Remember: bank → funds; depository → securities.
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