What Is the Major Distinction Between NOW Accounts and Traditional

question 135

Multiple Choice

What is the major distinction between NOW accounts and traditional demand deposits?

• A)Minimum account balance requirement to earn interest for NOW accounts.
• B)Zero explicit interest on NOW accounts.
• C)Noncheckable nature of NOW accounts.
• D)NOW accounts usually involve physical presence at the institution for withdrawal.
• E)Legal power to delay payment on NOW accounts.

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Definitions:

Finished Goods

Items that have finished the production process and are available for purchase.

Factory Overhead

All indirect costs involved in the production process, such as utilities and maintenance, not directly tied to production output.

Debit Balance

A financial condition where the total debits in an account exceed the total credits, often indicating amounts owed.

Credit Balance

The amount residing in a financial account that indicates credit or the sum payable to a party, opposite of a debit balance.