Abhi koi question add nahi kiya. PYQ Bank se questions add karein.
PYQ Bank ›
Class 10 › Economics › Money and Credit
CBSE2026Class Class 10 · Economics1 Marks · Mcq✅ Verified
Two statements I and II are given below. Read both the statements carefully and choose the correct option: Statement I: 'Demand deposits' can be withdrawn on demand. Statement II: 'Demand deposits' settle payments directly without the use of cash.
A. Statement I is correct, but Statement II is incorrect.
B. Statement I is incorrect, but Statement II is correct.
C. Both Statement I and Statement II are correct.
D. Both Statement I and Statement II are incorrect.
✅ Answer & Solution
✅ Correct Answer: C
Step 1: Check Statement I - Deposits in bank accounts that can be withdrawn on demand are called demand deposits; depositors have the right to demand their money at any time by filling a withdrawal form or using an ATM/cheque. This is CORRECT. Step 2: Check Statement II - Since demand deposits are accepted widely as a means of payment, they constitute money along with currency; a cheque or digital transfer instructs the bank to pay a certain amount from the account, so payments are settled directly without the use of cash. This is CORRECT. Step 3: Because of this feature, demand deposits are also called bank money. Step 4: Hence both statements are correct - Option (C).
