Demand deposits include which of the following? (choose the correct alternative)Saving account deposits and current account depositsAll types of depositsCurrent account deposits and fixed depositsSaving account deposits and fixed deposits (2024)

FAQs

What do demand deposits include? ›

Demand deposit refers to the deposit wherein the amount which you have deposited with the bank can be withdrawn by you any time. It includes saving account deposit and currency account deposit in which currency account is mainly meant for businessmen, and saving account is meant for the general public.

In simple terms, demand deposits are accounts through which you can withdraw money anytime you need without giving any prior application or notice. You must be familiar with some common demand deposit accounts like the checking account and savings account.

Demand deposits include saving account deposits and current account deposits.

Demand deposits are usually considered part of the narrowly defined money supply, as they can be used, via checks and drafts, as a means of payment for goods and services and to settle debts. The money supply of a country is usually defined to consist of currency plus demand deposits.

demand deposits. Funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution.

A checking account is also called a demand deposit account because the account holder may withdraw money on demand or write checks on the account at any time.

D emand deposits are deposits in banks that are available by withdrawaling or by writing a check. They should be included as money because they can be used as easily as currency to purchase goods and demand deposits also fulfill the three functions of money.

Current bank account is opened by businessmen who have a higher number of regular transactions with the bank. It includes deposits, withdrawals, and contra transactions. It is also known as Demand Deposit Account.

A demand deposit can be accessed at any time and withdraw any amount of funds without prior notice given to the bank. A term deposit can't be accessed at all until the lock period is served. No withdrawals can be made in term deposits until the date of maturity has arrived.

Solution: The demand deposit facility is like Cheque is an incorrect statement about demand deposits. A demand deposit is not the same as Cheque. Demand deposits are deposits where an individual can withdraw money on demand.

What is the most common demand deposit account? ›

The most common types of demand deposits are checking and savings accounts offered by banks and credit unions.

M1 includes demand deposits and checking accounts, which are the most commonly used exchange mediums through the use of debit cards and ATMs. Of all the components of the money supply, M1 is defined the most narrowly. M1 does not include financial assets, such as bonds.