Q. 104.5( 2 Votes )

What are 'demand deposits'?

Answer :

People need only some money for their day-to-day needs. So, people deposit the extra money with the banks by opening a bank account in their name. Banks accept the deposits and also pay an interest rate on the deposits. In this way people's money is safe with the banks and it earns an interest. People also have the provision to withdraw the money as and when they require. Since the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Becoming a bilionaire -learning fundamentals of moneyBecoming a bilionaire -learning fundamentals of moneyBecoming a bilionaire -learning fundamentals of money48 mins
A Letter to GodA Letter to GodA Letter to God50 mins
Combination and Decomposition ReactionsCombination and Decomposition ReactionsCombination and Decomposition Reactions59 mins
Resources and DevelopmentResources and DevelopmentResources and Development34 mins
Surface Area and VolumesSurface Area and VolumesSurface Area and Volumes43 mins
Mutations and VirusesMutations and VirusesMutations and Viruses49 mins
Quiz | Acid: Types and NomenclatureQuiz | Acid: Types and NomenclatureQuiz | Acid: Types and Nomenclature50 mins
Wren and Martin | GrammarWren and Martin | GrammarWren and Martin | Grammar39 mins
Transversal and Parallel LinesTransversal and Parallel LinesTransversal and Parallel Lines38 mins
Tricks and TipsTricks and TipsTricks and Tips49 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :