Question

What are demand deposits? Why are demand deposits considered as money?

Answer 1

Answer:

a deposit of money that can be withdrawn without prior notice, e.g. in a current account.

Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments. So, they are also considered as money in the modern economy.

Answer 2

Answer:

a deposit of money that can be withdrawn without prior notice, e.g. in a current account.

Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments. So, they are also considered as money in the modern economy.