What do people do with the extra cash? They deposit it with the banks by opening a bank account in their name. Banks accept the deposits and also pay an amount as interest on the deposits. In this way people’s money is safe with the banks and it earns an amount as interest.
People also have the provision to withdraw the money as and when they require. Since, the deposits in the bank accounts can be withdrawn on demand, these deposits are called demand deposits.
Read the above passage and answer the following questions
(a) What is demand deposit?
(b) What are the advantages of depositing cash money in banks?
© What values have you learnt from the passage?