Multiple Choice QuestionA checking account is also called a(n) _____.Multiple choice question.certificate of depositdemand depositinterest accountpaper account

Break Down the Problem

1. Identify the key term: "checking account".
2. Understand the function of a checking account and its common terminology.
3. Analyze each option provided in the multiple-choice question.

Relevant Concepts

• A checking account is a type of bank account that allows for numerous withdrawals and deposits, typically without any limit on the number of transactions.

Analysis and Detail

1. Certificate of Deposit: This is a savings product that offers a higher interest rate in exchange for the investor agreeing not to withdraw the funds for a specific period.

2. Demand Deposit: This refers to funds held in an account from which withdrawn funds may be demanded at any time, making it a perfect match for describing a checking account.

3. Interest Account: This is a generic term and does not specifically identify a type of account linked to checking.

4. Paper Account: This term is not commonly used and does not pertain to the nature of checking accounts.

Verify and Summarize

Upon reviewing the definitions and functions of each option, the term that directly relates to the nature of a checking account is "demand deposit," as it aligns with the accessibility and withdrawal features of checking accounts.

Final Answer

A checking account is also called a(n) demand deposit.