What is the major distinction between NOW accounts and traditional demand deposits?
A)Minimum account balance requirement to earn interest for NOW accounts.
B)Zero explicit interest on NOW accounts.
C)Noncheckable nature of NOW accounts.
D)NOW accounts usually involve physical presence at the institution for withdrawal.
E)Legal power to delay payment on NOW accounts.

Question

Quizplus · Accepted Answer

The major distinction between NOW accounts and traditional demand deposits is that NOW accounts require a minimum account balance to earn interest. Traditional demand deposits do not offer interest.

What Is the Major Distinction Between NOW Accounts and Traditional