10th Class Social Science Money and Credit Question Bank 10th CBSE Social Science Money and Credit

  • question_answer                                       How are demand deposits accepted as a means of payment?


                      (i) 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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