People hold money in the form of ____ with banks.

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Detailed Solution

People hold money in the form of deposits with banks.
Earlier, money was mainly in metallic coins, such as silver, gold, copper, etc., which continued well into the last century. Modern forms of money evolved in the form of currency notes and coins. Current currency by itself is not of any use. The government of India authorizes it as a medium of exchange; thus, it is treated as money. The other form of modern money is demand deposits, which are withdrawable at any time. People also use credit cards, which settle their bills on a credit basis, and they agree to their credit with the credit card company on a fixed-time basis. Cheques are also a modern instrument through which people request the bank to pay a specific amount from the person’s account to the person whose name the cheque has been issued.

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