Demand deposits are bank account balances that can be withdrawn at any time without prior notice. They form the basis of the money supply that is immediately accessible for transactions.
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Checking Account: A type of demand deposit account that allows for frequent withdrawals and deposits, facilitating daily financial transactions.
Money Supply: The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and demand deposits.
Overdraft Protection: A financial service that covers transactions made when insufficient funds are available in the demand deposit account, preventing bounced checks or declined payments