Which of the following liabilities have a high degree of withdrawal risk?
A)Passbook savings.
B)NOW Accounts.
C)Demand deposits.
D)Time deposits.

Question

Quizplus · Accepted Answer

Demand deposits have a high degree of withdrawal risk as they allow the depositor to withdraw their funds at any time without penalty. Passbook savings and time deposits have a lower degree of withdrawal risk as they often have penalties for early withdrawal. NOW accounts, which are Negotiable Order of Withdrawal accounts, also have less withdrawal risk than demand deposits as they require the depositor to give notice before withdrawing funds.

Which of the Following Liabilities Have a High Degree of Withdrawal