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Which of the following best defines a demand deposit?

easy Q1 of 15
Banking Awareness - Types Of Bank Accounts
Which of the following best defines a demand deposit?
ADeposit that can be withdrawn anytime without prior notice
BDeposit locked for a fixed tenure
CDeposit earning fixed interest only
DDeposit meant only for senior citizens
Step-by-Step Solution

  1. Step 1: Recall the definition of demand deposit.

    Demand deposits allow immediate withdrawal.

  2. Step 2: Match with correct description.

    No prior notice or lock-in is required.

  3. Final Answer:

    Deposit that can be withdrawn anytime without prior notice → Option A

  4. Quick Check:

    Anytime access = Demand Deposit ✅
Quick Trick: Immediate withdrawal means demand deposit.
Common Mistakes:
  • Assuming all interest-earning deposits are time deposits.
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