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What Are Time Deposits? [ - Economics

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Question

What are time deposits?

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Solution

Time deposits are fixed-term deposits with a fixed maturity period and their term of deposit varying from 7 days to 10 years. One cannot avail the benefits of issuing cheques against these deposits and they cannot be payable on demand. However, time deposits can avail interest towards the deposited amount.

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2013-2014 (March) All India Set 1
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