Which of the following is a NOT correct statement about demand deposits?

It means the balance in savings account deposit held by the public in commercial banks. It means the balance in current account deposits held by the public in commercial banks. It includes deposits, have a fixed period to maturity. None of the above

It includes deposits, have a fixed period to maturity.

Apart from currency notes and coins, the balance in savings, or current account deposits, held by the public in commercial banks is also considered money since cheques drawn on these accounts are used to settle transactions. Such deposits are called demand deposits as they are payable by the bank on demand from the account-holder. Other deposits, e.g. fixed deposits, have a fixed period to maturity and are referred to as time deposits . Thus, time deposits are not demand deposits.