Funds Held in Bank Accounts That Can Be Withdrawn by Depositors

question 71

Multiple Choice

Funds held in bank accounts that can be withdrawn by depositors at any time without advance notice are:

• A) demand deposits.
• B) required reserves.
• C) free funds.
• D) flow funds.

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Definitions:

Recourse

refers to the right to demand a legal or financial remedy when a contractual obligation is not honored by the other party.

Forged Instrument

indicates a document that has been illegally altered or created to look genuine for the purpose of deceit or fraud.

Checking Account

A bank account from which funds can be withdrawn using checks, debit cards, or electronic transfers, offering easy access to money for daily transactions.

Negligent

Failing to take proper care in doing something, leading to damage or injury to another.