Question

11 What are demand deposits?​

Answer 1

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Demand deposits, or non confidential money are funds held in demand accounts in commercial banks. These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Simply put, these would be funds like those held in a checking account.

Answer 2

Demand deposits are the money that we can withdraw from the bank when we have required.

What are the types of demand deposits?

1. Savings Accounts
2. Bank Reserve
3. Market Accounts

What are the advantages of demand deposits?

• People get money easily through demand deposit
• No penalty is charged in a demand deposit
• People get an interest  rate in a bank in which they deposit
• If someone invested for long period then they get a higher rate of interest