Choose the given statement is true/false:

Demand deposits are not considered money.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

True

False

answer is B.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

The given statement is false.
Demand deposits are considered to be money. Deposits that people keep in the bank earn interest. Above all, depositors have the provision to withdraw any amount of money from their available deposits from the bank whenever they want to. Since these deposits in the bank can be withdrawn at any time by the customers on demand, they can act as a medium of exchange. Demand deposits offer this exciting facility, which lends them the essential characteristics of money as a medium of exchange. For example, cheques are used as an instrument through which people can pay a specific amount from their account to another person’s account.
The correct statement will be demand deposits are considered to be money.

Watch 3-min video & get full concept clarity