Transaction deposit
In the
checkable deposits and other accounts that can be used directly as cash without withdrawal limits or restrictions. Such demand deposits are subject to reserve requirements imposed by the central bank that require the bank to keep reserves at the central bank. This is in contrast to "time deposits
" (a.k.a. term deposits), which are not subject to reserve requirements.
Regulations
Transaction accounts include all deposits against which the account holder is permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or by
savings deposits
, not transaction accounts.
See also
- Checkable deposits
- Demand deposits
- Money supply
- Time deposits