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Mention Two Differences Between Fixed Deposits and Demand Deposits. - Economics

Mention two differences between fixed deposits and demand deposits.

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Solution

Differences between demand deposits and fixed deposits:

1) The interest rate on demand deposits is very low, whereas fixed deposits carry a higher interest rate.

2) Demand deposits can be withdrawn at any time, whereas fixed deposits can be withdrawn only after the expiry of a specific period.

Concept: Commercial Banks: Functions
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