Question

why are demand deposits considered as money??​

Answer 1

ʜᴇʏᴀ ᴍᴀᴛᴇ!!

ʜᴇʀᴇ ɪs ᴜʀ ᴀɴsᴡᴇʀ:-⏬⏬

ᴅᴜᴇ ᴛᴏ ғᴏʟʟᴏᴡɪɴɢ ʀᴇᴀsᴏɴs ᴛʜᴇ ᴅᴇᴍᴀɴᴅ ᴅᴇᴘᴏsɪᴛs ᴀʀᴇ ᴄᴏɴsɪᴅᴇʀᴇᴅ ᴀs ᴍᴏɴᴇʏ

(ɪ) ᴅᴇᴍᴀɴᴅ ᴅᴇᴘᴏsɪᴛs ᴄᴀɴ ʙᴇ ᴡɪᴛʜᴅʀᴀᴡɴ ғʀᴏᴍ ᴛʜᴇ ʙᴀɴᴋ ᴡʜᴇɴᴇᴠᴇʀ ɪᴛ ɪs ʀᴇϙᴜɪʀᴇᴅ.

(ɪɪ) ᴛʜᴇʏ ᴀʀᴇ ᴡɪᴅᴇʟʏ ᴀᴄᴄᴇᴘᴛᴇᴅ ᴀs ᴀ ᴍᴇᴀɴs ᴏғ ᴘᴀʏᴍᴇɴᴛ, ᴀʟᴏɴɢ ᴡɪᴛʜ ᴛʜᴇ ᴄᴜʀʀᴇɴᴄʏ, ᴛʜᴜs ᴛʜᴇʏ ᴀϙʀᴇ ᴄᴏɴsɪᴅᴇʀᴇᴅ ᴀs ᴍᴏɴᴇʏ.

(ɪɪɪ) ᴛʜᴇʏ ᴀʀᴇ ᴀᴄᴄᴇᴘᴛᴇᴅ ᴡɪᴅᴇʟʏ ᴀs ᴍᴇᴀɴs ᴏғ ᴘᴀʏᴍᴇɴᴛ ʙʏ ᴡᴀʏ ᴏғ ᴀ ᴄʜᴇϙᴜᴇ ɪɴsᴛᴇᴀᴅ ᴏғ ᴄᴀsʜ.

Answer 2

Answer:

Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments.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

HOPE THIS HELP YOU MATE.....⭐⭐⭐⭐⭐