Question

what are demand deposits explain any 3 features

Answer 1

heya!

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demand deposits are the deposits which can be drawn on demand.

1. with this people can earn interests on their deposits.
2. it is accepted every where and it is good transaction
3. it's a modern form of currency

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hope it helps!

Answer 2

i) ,people with extra money deposit it in the bsnks by opening a bank account in their name
ii)banks accept the deposits and also pay an interest rate on the deposits. In this way people's money is safe with the banks and it earns an interest
iii) people also have the provision to withdraw the money as and when they require
iv) since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits