A checking account is also called a demand deposit because
A) depositors can demand a certain rate of interest on the account.
B) retailers can demand that they be used instead of paper currency.
C) it is the only type of account that demands regulation by the Federal Reserve.
D) the Federal Reserve can demand a certain level of deposits for these accounts.
E) funds may be withdrawn by its owner without advance notice.

Question

Quizplus · Accepted Answer

A checking account (also called a demand deposit), is money stored in an account at a bank or other financial institution that can be withdrawn without advance notice.

A Checking Account Is Also Called a Demand Deposit Because