Under TREC rules, a broker's trust account is a demand deposit account. What does 'demand deposit' mean in this context?
Correct Answer
A) The funds are available for withdrawal at any time without prior notice to the bank
A demand deposit account means the funds are available for withdrawal at any time without prior notice to the bank. This ensures that trust funds can be disbursed promptly when needed, such as at closing or when a contract terminates.
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