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| 1. |
Banks are efficient medium of exchange. Support the statement with arguments. |
| Answer» PEOPLE deposit their extra cash with banks by opening a bank account in their name.\tBanks accept the deposits and also pay an amount as interest on the deposits.\tPeople have the provision to withdraw the money as and when they require.\tDemand deposits offer another interesting facility. It is this facility which lends it the essential characteristics of money.\tPayments are being made by cheques instead of cash. For payment through cheque, the payer who has an account with the bank, makes out a cheque for a specific amount. | |