Question

Why for the banks there would be no demand deposits and no payments by cheques against deposits?

Answer 1

The demand deposits share the essential features of money.

• The facility of cheques against demand deposits make it possible to directly settle payments without the use of cash sales demand deposits are accepted wildly as a mean of payment along with currency they constitute money in the modern economy.

thх..

Answer 2

Heya _______

Answer _______

Yes, for the banks there would no demand deposits and no payments by cheques against deposits because ___

• Demand deposits r the extra surplus income of normal people's in banks and they get intrest on it but when ever they want they can clear that payment from the bank...

• Bank just only serve as a locker for demand deposits , bank can't use that deposits totally for its functions but it have to save it for future claims...

• No payments because bank enjoy the rest money from Credit Reserve Ratio to giving loans so it is not burden able for bank...

Thank you