What Is the Major Distinction Between NOW Accounts and Traditional

question 135

Multiple Choice

What is the major distinction between NOW accounts and traditional demand deposits?

• A)Minimum account balance requirement to earn interest for NOW accounts.
• B)Zero explicit interest on NOW accounts.
• C)Noncheckable nature of NOW accounts.
• D)NOW accounts usually involve physical presence at the institution for withdrawal.
• E)Legal power to delay payment on NOW accounts.

---

Definitions:

Global Meltdown

A severe and widespread economic downturn or crisis affecting multiple countries and economies around the world.

Barack Obama

The 44th President of the United States and the first African American to hold the office; served from 2009 to 2017, promoting policies such as healthcare reform and environmental sustainability.

Troubled Asset Relief Program

A program initiated by the U.S. government in 2008 to purchase toxic assets and equity from financial institutions to strengthen the financial sector.

U.S. Financial System

This system encompasses all the financial institutions in the United States, including banks, credit unions, and the Federal Reserve, responsible for monetary policy, financial services, and regulation.