2. Bank deposits and other liabilitiesUse the following categorization table to identify transaction and nontransaction accounts.Transaction Account Nontransaction AccountSavings, or Passbook AccountsMoney Market Deposit AccountsNOW AccountsCertificates of Deposit, CDDemand DepositsWhy and when were NOW accounts created?In the 1970s as a way to get around restrictive banking regulationsIn the early 2000s so that households could tap into the rising value of their housesIn the 1980s as a way for bank customers to invest in the stock marketDuring World War II to deal with wartime shortages

Let's complete the table first categorising transaction and non-transaction:Explanationa) Savings…

2. Bank deposits and other liabilities Use the following categorization table to identify transaction and nontransaction accounts. Savings, or Passbook Accounts Money Market Deposit Accounts NOW Accounts Certificates of Deposit, CD Demand Deposits Transaction Account Nontransaction Account Why and when were NOW accounts created? n In the 1970s as a way to get around restrictive banking regulations In the early 2000s so that households could tap into the rising value of their houses In the 1980s as a way for bank customers to invest in the stock market O During World War II to deal with wartime shortages

2. Bank deposits and other liabilities Use the following categorization table to identify transaction and nontransaction accounts. Savings, or Passbook Accounts Money Market Deposit Accounts NOW Accounts Certificates of Deposit, CD Demand Deposits Transaction Account Nontransaction Account Why and when were NOW accounts created? n In the 1970s as a way to get around restrictive banking regulations In the early 2000s so that households could tap into the rising value of their houses In the 1980s as a way for bank customers to invest in the stock market O During World War II to deal with wartime shortages

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 2QY

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