BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A. savings account
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B. checking account
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C. CD
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D. money market account
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Both C and D
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Detailed explanation-1: -This is another most common type of demand deposit account or DDA. These accounts offer a high liquidity which allows the money to be withdrawn at any time when required.
Detailed explanation-2: -Checking Account A demand deposit in a bank on which checks are drawn.
Detailed explanation-3: -A demand deposit account is just a different term for a checking account. The difference between a demand deposit account (or checking account) and a negotiable order of withdrawal account is the amount of notice you need to give to the bank or credit union before making a withdrawal.
Detailed explanation-4: -Demand deposit refers to those deposits which are payable by the bank on demand. Such deposits are generally maintained by businessmen with the intention of making transactions with cash deposits. They can be drawn upon by a cheque without any instructions.
Detailed explanation-5: -Demand deposits are deposits which can be withdrawn by the depositor at any time by means of a cheque. No interest is paid on such deposits.