Question

Which facility lends demand deposits the essential characteristics of
money?
A. Interest facility
B. Facility of frequent deposits and withdrawals
C. Facility of making payment through cheques instead of cash
D. Safe custody​

Answer 1

Answer:

option d

The ‘demand deposit facility’ is not like a cheque. It has the facility of a cheque that is issued against the demand deposit makes it possible to facilitate transactions without the ‘use of cash’.  

The demand deposit is the ‘deposit’ that can be ‘withdrawn on demand’ by the people.  

They can make payments through cheque instead of cash for the amount that has been deposited by them as a demand deposit.  

The person makes a for a ‘specific amount’ and instructs the bank to pay the ‘specific amount’ from the person's ‘account to the person’ in whose name the ‘cheque’ has been made.

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Answer 2

option b is correct...........