Question

Why are deposits in bank called demand deposits?What are the benifits of demand deposits?

Answer 1

Answer:

People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.

Cheques against a deposit settle payments without the use of direct cash.

Answer 2

Explanation:

Deposit mean when we give a surplus Money to bank as interest .

Benefits are deposit are to earn profit from bank.