Which of the Following Helps Explain Why Depositors Sometimes Put

question 78

Multiple Choice

Which of the following helps explain why depositors sometimes put their funds in demand deposits rather than NOW accounts?

• A)Demand deposits pay interest, whereas NOW accounts do not pay interest.
• B)Businesses may not hold NOW accounts.
• C)Checks may be written against demand deposits, but not against NOW accounts.
• D)Demand deposits are more liquid than NOW accounts.

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Definitions:

Reuptake

The process by which neurotransmitters are absorbed back into a nerve cell after they have been released into a synapse, thus terminating the signal between neurons.

Euphoria

A state of intense happiness and self-confidence, often beyond what is considered normal.

THC

The major active ingredient in marijuana; triggers a variety of effects, including mild hallucinations.

Hallucinogen

A substance that induces alterations in perception, mood, and consciousness, often creating visual or auditory distortions.