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Q.

Find the incorrect option:


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a

Demand deposits share the essential features of money

b

With demand deposits, payment can be made without cash

c

Demand deposits are a safe way of money transformation

d

Demand deposit facility is like a cheque 

answer is D.

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Detailed Solution

Demand deposit facility is not like a cheque. People usually save money they don't spend in the form of demand deposits in their bank accounts. Amounts from this account can be withdrawn on demand, and hence, such savings accounts are called demand deposits. They share several features with money and can therefore be used as a medium of exchange. People can transfer money from one account to another using a cheque facility.
 
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