A demand deposit in banks is a modern form of money in India because it can be easily withdrawn or transferred digitally through cheques, debit cards and UPI systems. Hence, it provides liquidity and convenience in modern economic transactions. Hence, the correct option is (b).
Which of the following is a modern form of money in India? (a) Gold jewellery (b) Demand deposit in banks (c) Commodity money like grain (d) UPI transection
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A demand deposit in banks represents a modern form of money in India. It allows people to store their earnings safely and access them anytime through cheques, debit cards, online banking and UPI transactions. Unlike traditional forms like gold or commodities, it offers security, liquidity and easy transfer of funds in a digital economy. Hence, the correct option is (b).