What are demand deposits what are their advantages?
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What is a 'Demand Deposit'
A demand deposit consists of funds held in an account from which deposited funds can be withdrawn at any time from the depository institution, such as a checking or savings account, accessible by a teller, ATM or online banking. In contrast, a term deposit is a type of account that cannot be accessed for a predetermined period of time. M1 is a category of the money supply that includes demand deposits as well as physical money and negotiable order of withdrawal (NOW) accounts that have no maturity period but limited withdrawals or transfers.
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Answer:
Heya ☺
✒ The deposit with the banks which can withdraw on demand are known as demand deposit.
Advantages :
⭐ People earn interset on demand deposit.
⭐ the depositer made the payment to a cheque.
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