"But for the banks there would be no demand deposits and no payments by checks against the deposits "explain the - Social Science - Money and Credit

Question

"But for the banks there would be no demand deposits and no
payments by checks against the deposits "explain the line

Komal Rani · Accepted Answer

Dear student For the banks, there are no demand deposits and no
payments by cheques against these deposits because demand deposits
are created when individuals/ organizations have surplus cash, and
they deposit this surplus cash with the banks A bank cannot have
demand deposits as the surplus cash of the banks are distributed as
loans Regards

"But for the banks there would be no demand deposits and no payments by checks against the deposits."explain the line.