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Single Answer MCQ
Q-00045425

How does the banking system facilitate the use of money?

1

By issuing cash only

2

By providing loans only

3

By offering demand deposits and cheque facilities

4

By limiting transactions to barter

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Sandeep Chaturvedi

Sandeep Chaturvedi

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Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

C. By offering demand deposits and cheque facilities

Solution:

The banking system facilitates the use of money by offering demand deposits that people can withdraw at any time and by providing cheque facilities that allow transactions without the need for cash.

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