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

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Who owns the majority of demand deposit accounts?

Consumers

Businesses

The majority of demand deposit accounts are owned by businesses. This is largely due to the operational needs of businesses that require convenient access to funds for daily transactions, payroll, and other time-sensitive financial activities. Businesses often maintain multiple accounts to handle various aspects of their operations, including managing cash flow, paying suppliers, and dealing with customer transactions.

While consumers do have a significant number of demand deposit accounts, the total aggregate balance and account variety held by businesses typically surpass that of individual consumers. Additionally, businesses often utilize various banking products and services that necessitate the use of demand deposit accounts, reflecting their essential role in business operations.

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The federal government

Non-profits

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