Q. 104.0( 6 Votes )
What are bank deposits? What are its benefits?
Apart from holding money incurrency, people can also hold money by making
deposits in banks. This can bedone by creating an account in the bank and depositing extra cash in it.These are known as demand deposits.
Bank deposits are useful for both the people depositing the cash, as well as for the banks.
For the people, when they deposit money in the bank, they earn interest on the deposit. Further, theirmoney is safe and they can access it whenever they want.Further, people can use bank deposits in order to pay one anotherby
cheques, and therefore, nocash has tobe physically exchanged.
The banks use these deposits to extend out loans to people at a given interest rate,and it is through this procedure that banks make money.
Rate this question :
Why are demand deposits considered as money?Together With Social Science
What are the modern forms of money? Why the rupee is widely accepted as a medium of exchange?Together With Social Science
How has the introduction of plastic money enhanced the convenience of both, the depositor and the bank? Explain.Together With Social Science
What are the modern forms of money? Why is the ‘rupee’ widely accepted as a medium of exchange? Explain two reasons.Social Science - Board Papers
Why can one not refuse a payment made in rupees in India?Social Science - Board Papers
The currency notes on behalf of the Central Government are issued by whom?Social Science - Board Papers
How are deposits with the banks beneficial for an individual as well as for the nation? Explain with examples.Social Science - Board Papers