Question

why demand deposits are considered money? ​

Answer 1

Answer:

Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments. So, they are also considered as money in the modern economy.

Explanation:

Answer 2

ᴅᴇᴍᴀɴᴅ ᴅᴇᴘᴏsɪᴛs ᴀʀᴇ ᴄᴏɴsɪᴅᴇʀᴇᴅ ᴀs ᴍᴏɴᴇʏ ғᴏʀ ᴛʜᴇ ғᴏʟʟᴏᴡɪɴɢ ʀᴇᴀsᴏɴs :

(ɪ) ᴛʜᴇʏ ᴄᴀɴ ʙᴇ ᴡɪᴛʜᴅʀᴀᴡɴ ғʀᴏᴍ ᴛʜᴇ ʙᴀɴᴋ ᴡʜᴇɴᴇᴠᴇʀ ɪᴛ ɪs sᴏ ʀᴇϙᴜɪʀᴇᴅ.

 (ɪɪ) ᴛʜᴇʏ ᴀʀᴇ ᴡɪᴅᴇʟʏ ᴀᴄᴄᴇᴘᴛᴇᴅ ᴀs ᴀ ᴍᴇᴀɴs ᴏғ ᴘᴀʏᴍᴇɴᴛ, ᴀʟᴏɴɢ ᴡɪᴛʜ ᴛʜᴇ ᴄᴜʀʀᴇɴᴄʏ, ʜᴇɴᴄᴇ ᴛʜᴇʏ ᴀʀᴇ ᴄᴏɴsɪᴅᴇʀᴇᴅ ᴀs ᴍᴏɴᴇʏ.

(ɪɪɪ) ᴛʜᴇʏ ᴀʀᴇ ᴀᴄᴄᴇᴘᴛᴇᴅ ᴡɪᴅᴇʟʏ ᴀs ᴍᴇᴀɴs ᴏғ ᴘᴀʏᴍᴇɴᴛ ʙʏ ᴡᴀʏ ᴏғ ᴀ ᴄʜᴇϙᴜᴇ ɪɴsᴛᴇᴀᴅ ᴏғ ᴄᴀsʜ. ᴛʜᴜs ᴛʜᴇʏ ᴀʀᴇ ᴀʟsᴏ ᴄᴏɴsɪᴅᴇʀᴇᴅ ᴀs ᴍᴏɴᴇʏ ɪɴ ᴛʜᴇ ᴍᴏᴅᴇʀɴ ᴇᴄᴏɴᴏᴍʏ.