Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in ru Forex banks. 1970s and 1980s response to the 1933 promulgation of Regulation Q in the U.
Demand deposits are usually considered part of the narrowly defined money supply, as they can be used, via checks and drafts, as a means of payment for goods and services and to settle debts. The money supply of a country is usually defined to consist of currency plus demand deposits. In most countries, demand deposits account for a majority of the money supply. During times of financial crisis, bank customers will withdraw their funds in cash, leading to a drop in demand deposits and a shrinking of the money supply.
Economists have speculated that this effect contributed to the severity of the Great Depression. This did not happen, however, in the financial crisis that began in 2008. In fact, demand deposits in the U. Monetary History of the United States, 1867-1960.
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