JAMB UTME - Economics - 1997

In commercial banking, an account from which the customer cannot withdraw money instantly is a?

demand deposit account

time deposit account

special deposit account

savings deposit account

Akọwa Nkọwa

In commercial banking, an account from which the customer cannot withdraw money instantly is called a time deposit account. This type of account is also known as a term deposit or a certificate of deposit (CD). When a customer opens a time deposit account, they agree to keep their money in the account for a specific period of time, known as the term. During this time, the customer cannot withdraw the money without paying a penalty. In exchange for this restriction, time deposit accounts typically offer higher interest rates than other types of deposit accounts. Therefore, the correct option is "time deposit account".






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