Question

3. Why is demand deposit considered a currency?

Answer 1

Answer:

Demand deposits are considered as money for the following reasons : ... (ii) They are widely accepted as a means of payment, along with the currency, hence they are considered as money. (iii) They are accepted widely as means of payment by way of a cheque instead of cash.

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Answer 2

Answer:

Demand deposits are considered as money for the following reasons : ... (ii) They are widely accepted as a means of payment, along with the currency, hence they are considered as money. (iii) They are accepted widely as means of payment by way of a cheque instead of cash.

Explanation: