Question

What are demand deposits? What are its advantage

Answer 1

the depositor who deposite money in the blank he or she has full chance of withdraw it is called demand deposite

Answer 2

Demand deposits are those deposits in the bank accounts which can be withdrawn in demand.

some of its advantages are :-

1- Demand deposits have the essential characteristics of money, that is, of a medium of exchange.

2-They eliminate the double coincidence of wants, are a store of value, make transactions easier and are a standard for deferred payments.

3-They are widely accepted as a means of payment along with currency. they constitute money in the modern economy. 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.