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What is meant by a demand deposit ? |
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Answer» Demand Deposits (also known as current deposits) are those deposits which can be withdrawn by the depositor at any time by means of cheques. No interest is paid on such deposits. Rather, the depositors have to pay something to the bank for the services rendered by it. These deposits are generally made by businessmen and industrialists who receive and make large payments. The accounts in which they are deposited are called Current Accounts. |
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