Question

explain the statement but for the banks , there would be no demand deposits and no payments by cheques against these deposits​

Answer 1

Answer:

It is false because the banks accept the deposits and also pay an interest on the deposits. People have the provision to withdraw the money as when they require. Hence it is called demand deposits. It has one interesting facility that we can make payments by cheques instead of cash

Answer 2

It is false because the banks accept the deposits and also pay an interest on the deposits. People have the provision to withdraw the money as when they require. Hence it is called demand deposits. It has one interesting facility we can make payments by cheques instead of cash.