Question

why are demand deposits offer another interesting facility

Answer 1

⭐Hey Mate ⭐

•Deposits which can be withdrawn by the borrower on demand at any time they like are called Demand deposits.

They provide a lot of facilities. They also charge a small rate of interest to the deposit and this way people can ensure that their money is safe with the banks.

Demand Deposits also provide a interesting facility.

It is the use of Cheques.

Cheques are papers which instruct the bank to pay an amount from a person's account to another person's account in whose name the cheque has said been issued.

=>It helps to complete the transaction without the use of money.