Which of the following deposit accounts requires relatively higher reserve requirements?
A) demand deposits
B) small time deposits
C) large time deposits
D) savings deposits

Question

Quizplus · Accepted Answer

Demand deposits typically require higher reserve requirements because they are funds that customers can withdraw at any time without prior notice, making them more liquid and necessitating banks to keep a higher reserve to meet potential withdrawal demands.

Which of the Following Deposit Accounts Requires Relatively Higher Reserve