### Question
How is the "transaction account" defined?


### Answer
The term **transaction account** is defined in *12 U.S.C. § 461* as follows -

> a deposit or account on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone transfers, or other similar items for the purpose of making payments or transfers to third persons or others

#### Citation:
  - *12 U.S.C. § 461*
  - Heading: **CHAPTER 2-NATIONAL BANKS > SUBCHAPTER XIV-BANK RESERVES**

