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Demand Deposits

Demand deposi...

Question

Demand deposits are considered to be money because of this feature:

A

medium of exchange

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B

ease of transport

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C

ability to be stored

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D

capacity to store

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Solution

The correct option is A medium of exchange
Money that has been deposited in a bank with the intent of being withdrawn for everyday expenses is known as demand deposits.

The deposits serve as a medium of exchange through cheques, debit cards, credit cards, and UPI. This is an essential feature of money.

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