Question

“People have conflicting developmental goals”. Support the statement with suitable example. What are demand deposits. Explain any three features of it.

Answer 1

Hint: Different persons could have different, and sometimes conflicting notions regarding a country’s development. The combination of currency and demand deposits is known as the money supply of a country.

Complete answer:
The statement that “People have conflicting development goals” is true. Needs such as income, freedom, equality, respect, are common for all the citizens of a country. For every individual, development or progress does not always have the same meaning. Different persons could have different, and sometimes conflicting notions regarding a country’s development. It is because of the fact that different people possess different interests, life situations, and state of mind. Every person’s capability of visualising the situation is according to his or her understanding. Development for some may mean destruction for others.

For e.g., Industries may want more dams, in order to get more electricity. But the tribal people may oppose this demand, as it would disrupt their lives by submerging the land.

Deposits in the bank accounts which are payable on demand are referred to as Demand deposits. Their features are as follows:
- The money can be withdrawn as and when required by the person without any prior notice to the bank.
- Bank pays interest on these deposits (If they not current accounts, but saving account deposits).
- Bank permits the owner of demand deposits to make out a cheque for a specific amount.

Note: The interest paid by the banks on Demand deposits is very low. Generally monthly fees is charged by the banks in order to provide services for these accounts. The Return on Investment in Deposit accounts is quite low when compared to returns on Treasury bills, commercial papers.