MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Money Supply

Why are deman...

Question

Why are demand deposits considered as money?

Open in App

Solution

Demand deposits considered as money due to the following reasons.
(i) These can be withdrawn from the bank whenever it is required.
(ii) They are widely accepted as a means of payment, along with the currency or a cheque instead of cash.

Suggest Corrections

thumbs-up

229

Similar questions

Q. why are demand deposits considered as money?

Q. Why are demand deposit considered as money?

How do demand deposits possess the essential features of money? (3 marks) or why are demand deposits considered a s money?

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

Q. Why are demand deposits considered as a form of collateral? Demand deposits are already a form of money, so giving them as collateral means giving money as collateral. And if the borrower already has that amount of money, why borrow?
The same goes for the saving of the SHGs, which are used as collateral to obtain loan from a bank.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Mindfulness

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard X Economics

Join BYJU'S Learning Program

CrossIcon