Final answer:
A checking account is an example of a demand account, as it allows the account holder to easily access and use their funds at any time for transactions, contrasting with savings accounts that typically have more restrictions on fund access but pay interest.
Step-by-step explanation:
An example of a demand account is a checking account. Demand accounts are deposits placed into banks that the bank must return to the account holder on demand, and checking accounts fit this description because the bank must allow you to withdraw from them or use the funds at any time.
Checking accounts are particularly useful when people hold money for the purpose of buying things and need easy access to their funds.
Banks offer checking accounts to facilitate transactions by giving account holders easy access to their money, usually by writing a check or using a debit card. This contrasts with savings accounts, which typically pay interest and might require a trip to the bank or ATM to access funds.
Over the years, the lines between these two types of accounts have blurred, with some checking accounts offering interest rates similar to savings accounts, and some savings accounts providing limited checking capabilities.