why are demand deposit consider as money
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(i) Demand deposits can be withdrawn from the bank whenever it is required. (ii) They are widely accepted as a means of payment, along with the currency, thus they aqre considered as money. (iii) They are accepted widely as means of payment by way of a cheque instead of cash
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The facility of demand deposits makes it possible to directly settle payments without the use of cash. Demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.
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