Demand Deposits Are Savings That Are Expected to Remain on Deposit

question 29

True/False

Demand deposits are savings that are expected to remain on deposit in a financial institution for an extended period.

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Definitions:

Investment Opportunity

A financial or economic chance to invest capital with the expectation of achieving a profitable return.

Risk Averse

Condition of preferring a certain income to a risky income with the same expected value.

Expected Benefit

The anticipated or forecasted gain or advantage that arises from a specific action or decision, often considered in cost-benefit analysis.

Subjective Probabilities

Individual assessments or beliefs about the likelihood of future events, based on personal judgment rather than objective data.