If a demand deposit contract can be withdrawn anytime without penalty, it means that

Name: If a demand deposit contract can be withdrawn anytime without penalty, it means that
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Quizplus · Accepted Answer

A demand deposit can be withdrawn anytime without penalty, meaning the depositor can effectively "sell" the deposit back to the bank at par value, and the concept of maturity is not applicable in the traditional sense, making it infinitesimal. However, it does not imply that the deposit is free of default risk.

If a Demand Deposit Contract Can Be Withdrawn Anytime Without