Question

You must remember the role that the banks play here. But for the banks, there would be no demand deposits and no payments by cheques against these deposits. The modern forms of money currency - - are closely linked to and deposits the working of the modern banking system.​

Answer 1

Answer:

Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits. Demand deposits offer another interesting facility. We must remember the role that the banks play here. But for the banks, there would be no demand deposits and no payments by cheques against these deposits.