Which of the following helps explain why depositors sometimes put their funds in demand deposits rather than NOW accounts?
A) Demand deposits pay interest, whereas NOW accounts do not pay interest.
B) Businesses may not hold NOW accounts.
C) Checks may be written against demand deposits, but not against NOW accounts.
D) Demand deposits are more liquid than NOW accounts.
Correct Answer:
Verified
Q18: Which of the following things do banks
Q19: A balance sheet
A)is a statement showing an
Q20: For a bank, net worth is equal
Q21: The interest rate on unsecured loans between
Q22: A key difference between small-denomination and large-denomination
Q24: All of the following are examples of
Q25: A cash item in the process of
Q26: Securities that banks sell and agree to
Q27: Which of the following would NOT be
Q28: Required reserves are
A)a tax on bank intermediation.
B)zero
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents