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Definition
What are demand deposits?
Define "demand deposits".
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Solution 1
Demand deposits are not for any specific period of time. They can be withdrawn as and when required. These deposits are chequable deposits.
Solution 2
The Demand Deposits are the deposits that are payable on-demand or on call. In other words, such deposits can be withdrawn by the depositor as and when required. Since demand deposits are always available on-demand, they are chequable deposits i.e. cheques can be issued against such deposits.
Concept: Currency Held by the Public and Net Demand Deposits Held by Commercial Banks
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