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Class 10 Exam  >  Class 10 Questions  >   Find the incorrect option:a)Demand deposit s... Start Learning for Free
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Find the incorrect option:
  • a)
    Demand deposit share the essential features of money
  • b)
    With demand deposit payments can be made without cash
  • c)
    Demand deposits are safe way of money transformation
  • d)
    Demand deposit facility is like cheque
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Find the incorrect option:a)Demand deposit share the essential featur...
People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits. Cheques against a deposit settle payments without the use of direct cash.
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Most Upvoted Answer
Find the incorrect option:a)Demand deposit share the essential featur...
Incorrect Option: D
Explanation:
Demand deposits are a type of bank account where the funds deposited can be withdrawn by the account holder at any time on demand. These deposits have several features that make them similar to money, but there are also some differences. Let's examine each option to understand why option D is incorrect.

a) Demand deposit share the essential features of money:
- Demand deposits exhibit some essential features of money such as being a medium of exchange, a store of value, and a unit of account.
- They can be used to make payments for goods and services, just like physical cash.

b) With demand deposit payments can be made without cash:
- This statement is true. Demand deposits enable individuals to make payments without the need for physical cash.
- Payments can be made through various electronic methods such as online transfers, debit cards, and mobile banking.

c) Demand deposits are a safe way of money transformation:
- This statement is generally true. Demand deposits are considered safe as they are held in banks, which are regulated and supervised by authorities.
- Banks have security measures in place to protect the funds deposited by their customers.
- However, there is always a certain level of risk involved in any financial transaction, including demand deposits.

d) Demand deposit facility is like a cheque:
- This statement is incorrect. While demand deposits and cheques are related to banking, they are not the same thing.
- A demand deposit refers to the account itself, where funds are held and can be accessed by the account holder.
- A cheque, on the other hand, is a written order from an account holder instructing the bank to pay a specific amount of money to a designated recipient.
- A demand deposit facility may provide the option to issue cheques, but it is not synonymous with a cheque.

Therefore, the incorrect option is D, as demand deposit facilities are not the same as cheques.
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Community Answer
Find the incorrect option:a)Demand deposit share the essential featur...
Check can be bounced but demand deposit can be done only when money is present in account
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Read the source given below and answer the questions that follows:Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits. A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc. The Reserve Bank of India supervises the functioning of formal sources of loans. For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose. There is no one to stop them from using unfair means to get their money back. Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. In recent years, people have tried out some newer ways of providing loans to the poor. The idea is to organise rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.Answer the following MCQs by choosing the most appropriate optionQ. An agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.

Read the source given below and answer the questions that follows:Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits. A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc. The Reserve Bank of India supervises the functioning of formal sources of loans. For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose. There is no one to stop them from using unfair means to get their money back. Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. In recent years, people have tried out some newer ways of providing loans to the poor. The idea is to organise rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.Answer the following MCQs by choosing the most appropriate optionQ. Banks use the major portion of the deposits to

Read the source given below and answer the questions that follows:Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits. A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc. The Reserve Bank of India supervises the functioning of formal sources of loans. For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose. There is no one to stop them from using unfair means to get their money back. Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. In recent years, people have tried out some newer ways of providing loans to the poor. The idea is to organise rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.Answer the following MCQs by choosing the most appropriate optionQ. Compared to the formal lenders, most of the informal lenders charge a much ................... interest on loans

Read the source given below and answer the questions that follows:Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits. A large number of transactions in our day-to-day activities involve credit in some form or the other. Credit (loan) refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment. In rural areas, the main demand for credit is for crop production. Crop production involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment, etc. The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc. The Reserve Bank of India supervises the functioning of formal sources of loans. For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors the banks in actually maintaining cash balance. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they choose. There is no one to stop them from using unfair means to get their money back. Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. In recent years, people have tried out some newer ways of providing loans to the poor. The idea is to organise rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.Answer the following MCQs by choosing the most appropriate optionQ. Formal sector loans include loans from(i) Banks(ii) Moneylenders(iii) Cooperatives(iv) Traders

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Find the incorrect option:a)Demand deposit share the essential features of moneyb)With demand deposit payments can be made without cashc)Demand deposits are safe way of money transformationd)Demand deposit facility is like chequeCorrect answer is option 'D'. Can you explain this answer?
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Find the incorrect option:a)Demand deposit share the essential features of moneyb)With demand deposit payments can be made without cashc)Demand deposits are safe way of money transformationd)Demand deposit facility is like chequeCorrect answer is option 'D'. Can you explain this answer? for Class 10 2024 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Find the incorrect option:a)Demand deposit share the essential features of moneyb)With demand deposit payments can be made without cashc)Demand deposits are safe way of money transformationd)Demand deposit facility is like chequeCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 10 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Find the incorrect option:a)Demand deposit share the essential features of moneyb)With demand deposit payments can be made without cashc)Demand deposits are safe way of money transformationd)Demand deposit facility is like chequeCorrect answer is option 'D'. Can you explain this answer?.
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