Economics
Answer
Demand deposits are considered as money because:
- Demand deposits provide easy access to funds. Individuals and businesses can withdraw money from these accounts at any time without prior notice.
- Demand deposits serve as a medium of exchange. People use them to make purchases and pay bills.
- Demand deposits allow easy access to cash through cheques and ATMs.
Related Questions
M. Salim wants to withdraw Rs 20,000 in cash for making payments. How would he write a cheque to withdraw money?
Tick the correct answer. After the transaction between Salim and Prem,
- Salim's balance in his bank account increases, and Prem’s balance increases.
- Salim's balance in his bank account decreases and Prem’s balance increases.
- Salim's balance in his bank account increases and Prem’s balance decreases.
Fill the following table.
Salim Swapna Why did they need credit? What was the risk? What was the outcome? Supposing Salim continues to get orders from traders. What would be his position after 6 years?