Which function is NOT related to a Demand Deposit Account (DDA)?

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Prepare for the Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Exam with flashcards and multiple choice questions. Each question includes hints and explanations to enhance your understanding. Get ready for your CCP exam today!

The function that is not related to a Demand Deposit Account (DDA) is investment in stocks. A Demand Deposit Account primarily serves as a liquid account where individuals or businesses can deposit and withdraw funds easily, typically without any notice or penalty. Key functions of a DDA include facilitating everyday transactions, such as accessing funds via debit card, paying checks, and receiving direct deposits through Automated Clearing House (ACH) transfers.

Investing in stocks, on the other hand, is associated with investment accounts or brokerage accounts rather than demand deposit accounts. It involves purchasing ownership in companies and is characterized by a different risk profile and liquidity considerations than a DDA, which is focused on easy access to cash. Therefore, investment in stocks does not align with the primary purpose and functions of a Demand Deposit Account.

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