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Questions
What are demand deposits?
Define "demand deposits".
Solution 1
Demand deposits are not for any specific period of time. They can be withdrawn as and when required. These deposits are chequable deposits.
Solution 2
The Demand Deposits are the deposits that are payable on-demand or on call. In other words, such deposits can be withdrawn by the depositor as and when required. Since demand deposits are always available on-demand, they are chequable deposits i.e. cheques can be issued against such deposits.
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RELATED QUESTIONS
High powered money includes ______.
Demand Deposits include ____________ and ____________.
i. Saving account deposits
ii. Fixed deposits
iii. Current Account Deposits
iv. Post Office Savings
Read the following statements - Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): Demand Deposits are considered a convenient mode of payment for the execution of even high-value transactions.
Reason (R): Demand Deposits are non-withdrawable in nature and cannot be withdrawn against the issue of cheques and other similar instruments of payment.
