The interest paid on time deposits, today, represents the main difference between time and demand deposits.

Question

Quizplus · Accepted Answer

The main difference between demand deposits (such as checking account deposits) and time deposits (such as deposits in savings accounts) is that while demand deposits are payable to the depositor on demand, a bank can require prior notification before a depositor withdraws funds from a time deposit. In the past, banks did not offer interest on demand deposits, but they now offer interest-bearing checking accounts.

The Interest Paid on Time Deposits, Today, Represents the Main