Question

Identify the advantages of demand deposits.

• A. Can be withdrawn at any time
• B. Have fixed maturity
• C. Require no additional charges on withdrawal
• D. Require the minimum deposit amount

Answer 1

Answer: (A), (C)

Require no additional charges on withdrawal

Deposits that can be withdrawn on demand are known as demand deopsits. Banks enable the use of demand deposits through cheques, debit cards, netbanking, ATMs, etc. These deposits are withdrawable at any time the depositor needs money, and there are no additional charges for it.