Funds held in bank accounts that can be withdrawn by depositors at any time without advance notice are:
A) demand deposits.
B) required reserves.
C) free funds.
D) flow funds.

Question

Quizplus · Accepted Answer

Demand deposits are also called checking deposits, and they allow depositors to withdraw their funds on demand without any prior notice. These type of deposits are payable on demand, and banks are required to keep a certain amount of reserves against these deposits to meet the withdrawal demands of the customers.

Funds Held in Bank Accounts That Can Be Withdrawn by Depositors