What are demand deposits . Explain any three features of it
Demand deposits are those deposits in the bank accounts which can be withdrawn on demand.
Features of Demand Deposits are :
1. They have the essential characteristics of money, that is, of a medium of exchange. They eliminate the Double Coincidence of wants, are a store of value, make transactions easier and are a standard for deferred payments.
2. They are closely linked to the working of the modern banking systems.
3.People's money remains safe when they are placed in the bank in the form of deposits.Peoples also earn rate of interest through demand deposits.
Features of Demand Deposits are :
1. They have the essential characteristics of money, that is, of a medium of exchange. They eliminate the Double Coincidence of wants, are a store of value, make transactions easier and are a standard for deferred payments.
2. They are closely linked to the working of the modern banking systems.
3.People's money remains safe when they are placed in the bank in the form of deposits.Peoples also earn rate of interest through demand deposits.