Demand deposits offer another interesting facility. It helps in making the
payment in cheque.
(ii) A cheque is a paper instructing the bank to pay a specific amount
from the person's account to the other person or to the accountholder.
(iii) Thus, we see that demand deposits share the
essential features of money.
(iv) The facility of cheques against demand deposits makes
settlement of payments possible without using cash.
(v) Since demand deposits are accepted widely as a means
of payment, along with currency, they constitute money in the modern economy.
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