Multiple choice

Bank deposits that can be withdrawn without notice are called:

  1. account payee deposits

  2. fixed deposits

  3. variable deposits

  4. demand deposits
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Demand deposits are bank deposits that can be withdrawn on demand without any prior notice or penalty. These include checking accounts and current accounts where account holders can withdraw funds anytime through checks, ATMs, or electronic transfers. In contrast, fixed deposits (term deposits) lock funds for a specified period, while 'account payee' and 'variable deposits' are not standard banking terminology for withdrawal categories.

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