A demand deposit contract does not have the following features:

Question

Quizplus · Accepted Answer

A demand deposit contract is not traded in a secondary market. It is an agreement between a bank and a customer where the bank agrees to hold the customer's funds and allow the customer to withdraw them at any time without penalty. It is a debt contract, and it is subject to a sequential service constraint, which means that the bank must serve withdrawal requests in the order they are received.

A Demand Deposit Contract Does Not Have the Following Features