A deposit with a bank that can be withdrawn whenever the depositor wants to do so is known as ____

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Detailed Solution

A deposit with a bank that can be withdrawn whenever the depositor wants to do so is known as a Demand Deposit.
1)      This type of deposit is generally maintained by the people in business who do the transactions daily.
2)      They can withdraw the amount with the help of cheques without any instructions.
3)      No interests are paid on demand deposits.
4)      Some banks also provide insurance on such deposits.
5)      Demand deposits are used to calculate the country's broad and little money.
6)      Demand deposits are also considered money because they are highly liquid.
7)      It is easy to conduct transactions using demand deposits.

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