Question

Explain the following term:

Deposit money

Answer 1

Deposit money, also known as bank money, refers to the funds kept in banks that can be accessed through the use of cheques. Bank customers deposit paper currency and coins into their accounts for safekeeping, and these deposits are recorded as credits to the respective accounts.

Such deposits are payable on demand and can be transferred from one individual to another. Based on these deposits, individuals can write cheques to make payments conveniently.