What Are Demand Deposits

question 75

Multiple Choice

What are demand deposits?  

• A) long-term, high-interest savings accounts 
• B) accounts to which depositors are required to make regular deposits 
• C) chequable deposits held by chartered banks 
• D) negotiable order of withdrawal accounts

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and prices adjust fully to economic changes, with all markets clearing and no external pressures affecting supply and demand.

Efficient Scale

The quantity of output that minimizes average total cost.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, leading to competition based on factors other than price.