Question

MCQ
(iv) A deposit with a bank that can be withdrawn whenever the depositor likes to do so, is termed as:
(a) a demand deposit
(b) a time deposit
(c) a fixed deposit
(d) a legitimate deposit
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Answer 1

It is called demand deposits

Answer 2

Answer:

The correct answer is option (a) that is demand deposit.

• Demand deposit accounts enable funds to be withdrawn at any moment from the financial institution.
• Demand deposits deliver the money, customers require for cash and for everyday expenditures and purchases.
• Demand deposit accounts yield limited or no interest—the trade-off for the funds being so readily accessible.
• Demand deposit accounts discrepancy to moment or term deposit accounts, in which the funds are confined for a specific period, inaccessible for access without sanction, if at all.