A deposit with a bank that can be withdrawn whenever the depositor likes to do so, is termed as:
(A) a demand deposit
(B) a time deposit
(C) a fixed deposit
(D) a legitimate deposit
Answer:
So the correct answer is (A) - a demand deposit.
Explanation
- The deposits in the bank accounts that can be withdrawn on demand are called demand deposits . So this is correct .
- A time deposit is a deposit with the bank with a specific maturity date . So this is not correct .
- A fixed deposit is a deposit with the bank with a fixed tenure or fixed date of maturity. So this is not correct .
- A legitimate deposit is a deposit with the bank that is legitimate . So this is not correct .
