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Business Definition for: demand deposit
demand deposit

deposit from which funds may be drawn on demand and from which funds may be transferred to another party by means of a check. Demand deposits are the biggest component of the U.S. money supply.

See also time deposit
demand deposit

account balance which, without prior notice to the bank, can be drawn on by check, cash withdrawal from an automatic teller machine, or by transfer to other accounts using the telephone or home computers. Demand deposits are the largest component of the U.S. money supply , and the principal medium through which the Federal Reserve implements monetary policy.

See also compensating balance or compensatory balance
demand deposit

account paying funds on demand without notice of intended withdrawal. Also called a checking account, Federal and state banking laws define a demand deposit as any bank deposit payable within 30 days. Bank demand deposit drafts, or checks, are negotiable instrument , as defined by Article 3 of the Uniform Commercial Code .

See also check , Negotiable Order Of Withdrawal (NOW) Account , super now account
demand deposit

account balance that, without prior notice to the bank, can be drawn on by check , by cash withdrawal from an Automated Teller Machine (ATM) , or by transfer to other accounts using a telephone or home computer.

See also money supply
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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