Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

Negotiable Orders of Withdrawal (NOW) accounts are designed specifically for personal banking needs, catering to non-commercial customers. These accounts allow account holders to write checks while also earning interest, combining features of both checking and savings accounts. The exclusivity of NOW accounts to non-commercial customers is due to regulatory requirements that govern these types of accounts, aimed at preventing their misuse for business purposes.

Money Market Demand Accounts and Demand Deposit Accounts can be opened by various entities, including commercial customers, making them less exclusive to non-commercial individuals. Mortgage loans do not fall within the category of deposit accounts; they are also widely available to both individuals and businesses. By contrast, NOW accounts are clearly defined in terms of their intended customer base, emphasizing their role in personal finance management for individual account holders.