Question

5 features of demand deposits.

Answer 1

1 they can be withdrawn at any time 2 banks give an interest on them 3 used by banks to give loan 4 act as a medium of exchange 5 modern form of currency

Answer 2

People use to save their extra or surplus income in the banks in return to this, banks give them an inter-est in it. As this deposit can be withdrawn by people, this deposit is called the demand deposit. The fol-lowing are the five features of Demand deposits:

1. They exhibit the primary feature of money.

2. The make it feasible to directly make payments without the use of cash.

3. They can be encashed by issuing cheques.

4. They are widely accepted as a medium of payment.

5. They are a standard for negotiated payments.