Discussion
The most important reason for an investor to go for a bank deposit is
Answer: A
Correct answer: The credit worthiness of the bank
An investor's first concern with a deposit is whether it will be repaid, so the bank's creditworthiness is the governing consideration. A deposit is an unsecured claim on the bank, and no return compensates for the loss of principal.
The other options are inaccurate as stated. Banks do invest in securities, extensively - statutory liquidity requirements oblige them to. And the bank does not itself guarantee the deposit; protection comes from deposit insurance under the DICGC, which covers only up to a prescribed limit per depositor per bank.
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