What is Money in Modern Economy
In Modern Economy,
Money consists of Currency Notes and Coins
It Also includes Demand Deposits + Term Deposits
Currency Notes
They are issued by Monetary authority of the country
In India, it is Reserve Bank of India
Coins
They are issued by Govt of India
Demand Deposits
Balance in Savings and Current Accounts of Banks is called Demand Deposits
It is called Demand Deposit because it can be withdrawn anytime on demand (by issuing cheques etc)
Term Deposit
They are deposits for a fixed period of time
Example - Fixed Deposits have a fixed maturity date