Question

Why are deposits in the banks called? What are the benefits of the deposits with the banks?​

Answer 1

$\huge\bigstar\underline\mathtt{Answer:-}$

• Since the deposits in the bank account can be withdrawn on demand. These deposits are called demand deposits.
• People deposit extra cash with the bank by opening a bank account in their name.
• Banks accept the deposits and also pay an interest on these deposits.

$\Large\star\sf\underline{Benefits:-}$

• People's money is safe with the bank and it earn an amount of interest.
• People have all provision to withdraw money as and then they require.

Answer 2

1. Benefits: People have the provision to withdraw the money as and when they require. Since, the deposits in the bank accounts can be withdrawn on demand. Therefore, these deposits are called demand deposits