The Portion of Any Demand Deposit That a Customer Keeps

question 65

Multiple Choice

The portion of any demand deposit that a customer keeps as support for its existing or maturing obligations is called a(n)

• A)account receivable.
• B)bank overdraft.
• C)compensating balance.
• D)restricted cash.

---

Definitions:

Liability

The legal responsibility or obligation to compensate someone else for harm or damage caused by one's actions or failure to act.

Time Paper

Commercial paper or negotiable instruments, like promissory notes or bills of exchange, that have a specific maturity date.

Overdue

Referring to something, such as a payment or task, that has not been completed or paid by its due date.

Sunday

The day of the week considered the first day by some cultures and calendars and the seventh day by others, often associated with rest and religious activities.