A bank must hand over a demand deposit when asked. That is why it is called a deposit on:
ADonation
BDemand
CDelivery
DDecision
Answer & Solution
Correct answer: B. Demand
1. The customer writes a cheque or swipes a card.
2. The bank must pay out at once.
3. So it is payable on demand.
_Source: OpenStax Principles of Macroeconomics 3e, Chapter 14, Money and Banking._
Keep practising Money and Banking
Browse all Money and Banking questions for CAIIB, or explore more Economics topics.