for the
banks, there would be no demand
deposits and no payments by
cheques against these deposits. please explain this line..
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The statement means that without the banks there would be no demand deposits and no payments by cheques against these deposits.
The statement means that without the banks there would be no demand deposits and no payments by cheques against these deposits.The facility of cheques against demand deposits makes it possible to directly settle payment without the use of cash. Bank plays a very vital role as there would be no demand deposits and no payment by cheques against the demand deposit in absence of banking system. Thus, it is clear that currency and deposits are closely linked to the working of the modern banking system
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