Question

why demand deposits is called modern forms of money?​

Answer 1

Demand deposits are considered as money for the following reasons :

(i) They can be withdrawn from the bank whenever it is so required.

(ii) They are widely accepted as a means of payment, along with the currency, hence they are considered as money.

Answer 2

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Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments.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:

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