Important features of demand deposit
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1. medium of exchange. They eliminate the double coincidence of wants, are a store of value, make transactions easier and are a standard for deferred payments.
2. They are widely accepted as a means of payment along with currency. they constitute money in the modern economy.
3. Demand deposits are closely linked to the working of the modern banking systems.
4. People's money remains safe when they are placed in the bank in the form of demand deposits.
5. Through demand deposits, people earn interest on the money they deposit.
2. They are widely accepted as a means of payment along with currency. they constitute money in the modern economy.
3. Demand deposits are closely linked to the working of the modern banking systems.
4. People's money remains safe when they are placed in the bank in the form of demand deposits.
5. Through demand deposits, people earn interest on the money they deposit.
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