A type of deposit (bank deposit account) from which money can be withdrawn on demand- i.e., at any time without prior notice (e.g. in a current account). Demand deposits are held in demand accounts (demand deposit accounts or DDAs) in commercial banks and similar institutions. Demand deposit funds bear a low or a zero interest rate, due to their availability on a demand basis.
From a macroeconomic monetary perspective, account balances associated with demand deposits are typically considered money and constitute the major part of the narrowly defined money supply of a country (narrow money). By definition, narrow money is part of money supply that includes coins and currency, demand deposits, and other liquid assets held by a country’s central bank.
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