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What are demand deposits and why should they be included in the stock of money?
Principles of Macroeconomics (Mind...
Solutions
Principles of Macroeconomics (Mind...
What are demand deposits and why should they be included in the stock of money?
Explanation of Solution
Money is anything which is accepted as payment to the goods and services from a market. It acts as a medium of exchange, store of value, unit of account, and so forth. Any commodity that is being accepted by the economy for this purpose is considered as money. It is usually metal coins and paper currencies.
The demand deposits are the deposits that the general public has with the banks...
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