alleryWhy are demand deposits treated as money?
AThey earn very high interest
BThey are issued by the RBI
CThey need collateral to hold
DCheques allow payment without cash
Answer & Solution
Correct answer: D. Cheques allow payment without cash
Cheques against demand deposits settle payments without cash, so deposits act as a medium of payment.
Keep practising Economic Development & Banking
Browse all Economic Development & Banking questions for CBSE Class 10, or explore more Social Science topics.
Related questions
What must every e-commerce entity display under the 2019 Act?Which authority was set up under the Consumer Protection Act, 2019?What is a mediator in consumer disputes?Which is a weakness of the consumer redressal process in India?Why is evidence hard to gather in many small purchases?Roughly how many consumer groups exist in India, per NCERT?Which of these goods must be certified before sale in India?For which product is certification mandatory for producers?