Deposits are equally acceptable in exchange, and so equally as liquid as cash, for most purposes.
If people were not willing to loan cash to the banks in exchange for deposits, banks would not be able to create money. I think this is somewhat askew, in an interesting way. So in that sense, to reduce him to the question below, is to take the argument out of context. On the other hand, it does so in an interesting way. If you thinka bout it, that's exactly true.