Which type of deposits with the banks are called demand deposits? State some important features of demand deposits.
Those deposits in the bank accounts that can be withdrawn on demand, are called demand deposits.
Some importantfeatures of demand deposits are
(i) Demand deposits are accepted widely as a means of payment by way of a cheque along with currency.
(ii) They are closely linked to the working of the modern banking system. Such deposits earn an amount as interest.