Which of the following liabilities have a high degree of withdrawal risk?
A)Passbook savings.
B)NOW Accounts.
C)Demand deposits.
D)Time deposits.
E)Wholesale CDs.

Question

Quizplus · Accepted Answer

Demand deposits have a high degree of withdrawal risk because they can be withdrawn by the depositor at any time without prior notice or penalty. Other types of deposits such as time deposits and wholesale CDs have penalties for early withdrawal or maturity dates, making them less likely to be withdrawn suddenly. Passbook savings and NOW accounts also have withdrawal restrictions or penalties, making them less risky than demand deposits.

Which of the Following Liabilities Have a High Degree of Withdrawal