what is demand deposits ? describe any 3 salient feature of demand deposits

Demand deposits are those deposits in the bank accounts which can be withdrawn in demand.

  1. Demand deposits have the essential characteristics of money, that is, of a medium of exchange. They eliminate the double coincidence of wants, are a store of value, make transactions easier and are a standard for deferred payments.
  2. They are widely accepted as a means of payment along with currency. they constitute money in the modern economy. 
  3. Demand deposits are closely linked to the working of the modern banking systems.
  4. People's money remains safe when they are placed in the bank in the form of demand deposits.
  5. Through demand deposits, people earn interest on the money they deposit.

I'm not very sure which of these three features are the 'salient' ones, but they cover all the features of demand deposits.

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