A checking account at a commercial bank is called a:
A) Share draft account
B) Negotiable instrument
C) Financial intermediary
D) Demand deposit account

Question

Quizplus · Accepted Answer

The correct term for a checking account at a commercial bank is a demand deposit account because the funds deposited can be withdrawn on demand by the depositor. Share draft accounts are similar to checking accounts but are offered by credit unions. Negotiable instrument refers to any document that promises payment to a specified person or the person holding the document. Financial intermediary is a general term for any institution or individual that accepts funds from savers and channels them to borrowers.

A Checking Account at a Commercial Bank Is Called A