Answer:
(i)
Workers who receive their salaries at the end of each month have extra cash at
the beginning of the month.
(ii) This extra cash is deposited with the bank by opening a bank account
in their name.
(iii) Banks accept the deposits and also pay an interest
rate on the deposits.
(iv) In this way, people's money is safe with the banks
and it earns an interest as well.
(v) People also have the provision to withdraw the money
as and when they require.
(vi) Since the deposits in the bank accounts can be
withdrawn on demand, these deposits are called demand deposits.
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