BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Time Deposits
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Demand Deposits
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Variable Deposits
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Low cost Deposits
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Detailed explanation-1: -Demand deposits are deposits which can be withdrawn by the depositor at any time by means of a cheque.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.
Detailed explanation-2: -A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice.
Detailed explanation-3: -The deposits one can withdraw on demand are known as demand deposits.
Detailed explanation-4: -A demand deposit is money deposited into a bank account with funds that can be withdrawn on-demand at any time. The depositor will typically use demand deposit funds to pay for everyday expenses. For funds in the account, the bank or financial institution may pay either a low or zero interest rate on the deposit.