Distinguish between demand deposits and fixed deposits.
Differences between demand deposits and fixed deposits:
|Demand deposits||Fixed deposit|
|The interest rate on demand deposits is very low.||Fixed deposits carry a higher interest
|Demand deposits can be withdrawn at any time.||Fixed deposits can be withdrawn only after the expiry of a specific period.|
|Demand deposits are chequable, i.e. they can be withdrawn through cheques.||Fixed deposits are not chequable.|
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Solution Distinguish Between Demand Deposits and Fixed Deposits. Concept: Concept of Credit Creation.