BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is money placed in a checking account called?
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Investment deposit
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Special deposit
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Restrictive deposit
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Demand deposits
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Explanation:
Detailed explanation-1: -What Is a Demand Deposit? A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice. DDA accounts can pay interest on the deposited funds but aren’t required to. Checking accounts and savings accounts are common types of DDAs.
Detailed explanation-2: -These are the amounts held in checking accounts. They are called demand deposits or checkable deposits because the banking institution must give the deposit holder his money “on demand” when a check is written or a debit card is used.
Detailed explanation-3: -The deposits one can withdraw on demand are known as demand deposits.
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