Which of the Following Helps Explain Why Depositors Sometimes Put

question 78

Multiple Choice

Which of the following helps explain why depositors sometimes put their funds in demand deposits rather than NOW accounts?

• A)Demand deposits pay interest, whereas NOW accounts do not pay interest.
• B)Businesses may not hold NOW accounts.
• C)Checks may be written against demand deposits, but not against NOW accounts.
• D)Demand deposits are more liquid than NOW accounts.

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