Why the demand deposits are considered as money?Explain.

Asked by Last Modified  

3 Answers

Learn Economics +1

Follow 5
Answer

Please enter your answer

Accounting Tutor

Demand deposits are considered as money, because they can be withdrawn when required and the money withdrawn can be used for making payments. So, they are also considered as money in the modern economy.
Comments

Online Teacher with over 30 Years Experience

Money is what money does and medium of exchange is the most important function of money. Demand deposits are also known as chequable deposits as they can be used on demand. They can also be used for making payments. That's why they can be considered as money.
Comments

Tutor

i) Demand deposits can be withdrawn from the bank whenever it is required.(ii) They are widely accepted as a means of payment, along with the currency, thus they aqre considered as money.(iii)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

View 1 more Answers

Related Questions

Is it necessary to go to coaching or tuition for English in class 12 CBSE?
I think those students who are studying in a CBSE schools.They won't need.
Brahma
0 0
6
Is coaching in class 12 necessary to score 100 in chemistry?
Coaching is NOT necessary. But one must be ready to develop some qualities/habits to substitute the advantages coaching institutes provides. 1. CONSISTENCY: You must be regular with your studies. Because...
Santosh
0 0
5
Is it necessary to join the coaching for PCM (Class 11)?
If you are from ICSE or cbse board then you can read physics and chemistry at home and take tution for maths only. But if you are from West Bengal board.. you can take tution for PCM. This is because some...
Mukundan
I have just entered class 11 and want to prepare for IIT-JEE. How do I manage between school and coaching?
Focus on JEE classes as most of the students do. You can cover your class course easily after these classes before exams.
Sweetu
0 0
6

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Recommended Articles

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

E-learning is not just about delivering lessons online. It has a much broader scope that goes beyond manual paper or PowerPoint Presentations. To understand the reach of E-learning and how the whole process works in developing the Educational system, we will discuss a few points here. Let us find out how this new learning...

Read full article >

Once over with the tenth board exams, a heavy percentage of students remain confused between the three academic streams they have to choose from - science, arts or commerce. Some are confident enough to take a call on this much in advance. But there is no worry if as a student you take time to make choice between - science,...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you