Demand deposits are also called:
A)chequing accounts.
B)high-powered money.
C)savings balances.
D)Bank of Canada notes.

Question

Quizplus · Accepted Answer

Demand deposits are popularly known as chequing accounts as they offer the flexibility to access the funds on demand by writing a cheque, making a withdrawal or transferring the funds electronically. Option B, C, and D are incorrect as high-powered money consists of both currency in circulation and reserves with the central bank, savings balances are different from demand deposits as they pay interest and have limitations on withdrawals, and Bank of Canada notes are physical currency issued by the central bank.

Demand Deposits Are Also Called