Question

Deposits in bank accounts withdrawn on demand are called _________.

• A. fixed deposits
• B. recurring deposits
• C. demand deposits
• D. none of these

Answer 1

Answer: (C)

demand deposits

1. A demand the deposit consists of funds held in an account from which deposited funds can be withdrawn at any time from the depository institution, such as a checking or savings account, accessible by a teller, ATM or online banking.
2. People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.