Question

Money and credit
5. What are demand deposits?Why do they constitute money?
6. What is a cheque?why should we cross the cheque?
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Answer 1

Answer:

5)Demand deposits, or non confidential money are funds held in demand accounts in commercial banks. These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Simply put, these would be funds like those held in a checking account.

6)A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where their money is held.

Adding a crossing to a cheque increases its security in that it cannot be cashed at a bank counter but must be paid into an account in exactly the same name as that which appears on the 'payee' line of the cheque (i.e. the person who has received the cheque, who is legally the

Explanation:

sorry could not answer this question,Why do they constitute money?