Why do we consider demand deposits
as money?
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Answered by
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Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments.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.
Answered by
1
Explanation:
Demand deposits are considered as money of modern day .The reason is that one can do payment or give money to other with the help of cheque without going physically to that person .This money can be used for settling transactions .Hence , demand deposits act as the medium of exchange .Since ,money is also a medium of exchange . So ,demand deposit is also money
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