MCQ 11 Mark
People with extra money deposit it in the banks by opening a bank account in their name. Banks accept deposits and also pay an interest rate on deposits. In this way, people's money is safe with the banks and it earns interest. People also have the provision to withdraw the money as and when they require. Since the deposits in the bank accounts can be withdrawn on demand.
What is the term used in the above, when money can be withdrawn on demand?
What is the term used in the above, when money can be withdrawn on demand?
- ADemand Deposit
- BSurplus Deposit
- CFixed Deposit
- DTerm Deposit
Answer
View full question & answer→(a) Demand Deposit
Explanation:
People with extra money deposit it in the banks by opening a bank account in their name. Banks accept deposits and also pay an interest rate on deposits. People also have the provision to withdraw the money as and when they require it. A demand deposit consists of funds held in an account from which deposited funds can be withdrawn at any time from the depository institution.
Explanation:
People with extra money deposit it in the banks by opening a bank account in their name. Banks accept deposits and also pay an interest rate on deposits. People also have the provision to withdraw the money as and when they require it. A demand deposit consists of funds held in an account from which deposited funds can be withdrawn at any time from the depository institution.
