Question

Why the demand deposits are considered as
money?
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Answer 1

Demand deposits can be withdrawn from the bank whenever it is required. (ii) They are widely accepted as a means of payment, along with the currency, thus they aqre considered as money.

Answer 2

Answer:

(i) Demand deposits can be withdrawn from the bank whenever it is required. (ii) They are widely accepted as a means of payment, along with the currency, thus they aqre considered as money. (iii) They are accepted widely as means of payment by way of a cheque instead of cash.