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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.
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This did not happen, however, in the financial crisis that began in 2008. In fact, demand deposits in the U.S. increased dramatically, from around $ 310 billion in August 2008 to a peak of around $ 460 billion in
December 2008.
1052:, 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
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of a country. Simply put, these are deposits in the bank that can be withdrawn on demand, without any prior notice.
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in the U.S., demand deposits in some cases came to allow easier access to funds from other types of accounts (e.g.
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1024:). For the historical basis of the distinction between demand deposits and NOW accounts in the U.S., see
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In the United States, demand deposits arose following the 1865 tax of 10% on the issuance of
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Demand deposits are usually considered part of the narrowly defined
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1107:, and Robin Wells. Economics. New York: Worth, 2006. Print.
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In the U.S., demand deposits only refer to funds held in
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969:and form the greater part of the narrowly defined
1119:Monetary History of the United States, 1867–1960
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961:are funds held in demand accounts in commercial
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1008:(or cheque offering accounts) other than
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999:history of banking in the USA
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595:Fractional-reserve banking
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498:Diversification (finance)
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448:Automated teller machine
695:Stress test (financial)
1177:Business and economics
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869:Too connected to fail
630:Investment management
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387:Correspondent account
81:Community development
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600:Full-reserve banking
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116:Export credit agency
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859:Time value of money
685:Statistical finance
675:Sustainable finance
625:Investment advisory
267:Time deposit (Bond)
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809:History of banking
705:Structured product
700:Structured finance
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1147:. Retrieved
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1078:Money portal
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468:Asset growth
463:Bank secrecy
338:Bill payment
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91:Credit union
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997:notes; see
989:, 1995–2012
819:Market risk
710:Toxic asset
680:Speculation
568:engineering
106:Development
86:Cooperative
1187:Categories
1092:References
995:state bank
792:regulation
441:management
436:allocation
333:Electronic
126:Industrial
121:Investment
101:Depository
76:Commercial
1086:Liquidity
772:Financial
563:economics
543:Financial
409:BRICS PAY
201:Wholesale
196:Universal
96:Custodian
1149:18 March
1064:See also
896:Category
588:services
573:forecast
548:analysis
453:Bad debt
239:Accounts
224:Accounts
161:Payments
151:Offshore
131:Merchant
56:Advising
977:History
906:Commons
583:planner
553:analyst
301:Prepaid
262:Savings
252:Deposit
186:Savings
171:Private
146:Neobank
71:Central
33:Banking
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839:Shares
802:system
782:market
343:Mobile
323:Cheque
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181:Retail
176:Public
111:Direct
967:money
963:banks
558:asset
431:Asset
421:Terms
382:SWIFT
296:Debit
278:Cards
231:Cards
1151:2010
1123:ISBN
1020:and
797:risk
640:Loan
578:plan
478:Cash
404:SPFS
399:CIPS
377:Giro
355:RTGS
350:Wire
328:Card
61:Banq
957:or
777:law
533:ESG
394:CLS
367:ACH
286:ATM
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