Question

Why are demand deposits considered as money? Explain with some examples?​

Answer 1

) Demand deposits can be withdrawn from the bank whenever it is required.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.

Answer 2

Answer:

(i) Demand deposits can be withdrawn from the bank whenever it is required.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