what are the advantages of demand deposit ?
why are demand deposits considered as money?
Answers
Answer:
1) Banks accept deposited and also pay an amount as interest on the deposits. In this way, people's money is safe and also earn an amount of interest. 2)People have the provision to withdraw money as and when they require. 3)Demand deposit also supports cheque facilities making big money transactions easier
Demand deposit accounts allow funds to be withdrawn at any time from any institution. For example- the financial institution, saving account, bank reserves, money supply, and many other such kinds of institutions. Demand deposits provide the money to the consumers that are needed for daily expenses and purchases. It accounts to pay little or at some times it can be done without the help of payment. Funds are so easily available with the improvement of trade-offs.