Which of the following statements is true regarding demand deposits?

They cannot be withdrawn anytime.

They require notice for withdrawal.

They are considered money.

They are fixed deposits.

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

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

Answer and Solution

C. They are considered money.

Demand deposits are considered money because they are readily accessible and can be withdrawn at any time, making them a liquid asset.

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

If a bank lowers the interest rate on loans, what is likely to happen to the demand for loans?

What happens when a borrower repays a loan with interest?

In the context of loans, what does the term 'interest rate' refer to?

Which of the following best describes the relationship between depositors and borrowers?