Why are demand deposits considered as money
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Answered by
501
Demand deposits are considered as money for the following reasons :
(i) They can be withdrawn from the bank whenever it is so required.
(ii) They are widely accepted as a means of payment, along with the currency, hence they are considered as money.
(iii) They are accepted widely as means of payment by way of a cheque instead of cash. Thus they are also considered as money in the modern economy.
(i) They can be withdrawn from the bank whenever it is so required.
(ii) They are widely accepted as a means of payment, along with the currency, hence they are considered as money.
(iii) They are accepted widely as means of payment by way of a cheque instead of cash. Thus they are also considered as money in the modern economy.
Answered by
87
Explanation:
this is because they can be withdrawn from the bank at any time and the money withdrawn can be used for various reasons. also they are widely accepted as means of payment they constitute money in the modern economy
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