18-37 NOW accounts are potentially less prone to withdrawal risk than demand deposits.

Question

Quizplus · Accepted Answer

NOW accounts (Negotiable Order of Withdrawal) typically have restrictions on the number of withdrawals and transfers that can be made per month, which can discourage frequent and sudden withdrawals. In contrast, demand deposits have no such restrictions and can be withdrawn at any time, making them more prone to withdrawal risk.

18-37 NOW Accounts Are Potentially Less Prone to Withdrawal Risk