Question

What is the difference between demand deposits and time deposits?

Answer 1

$$\begin{array}{cc}\text{Demand deposits}& \text{Time deposits}\\ 1.\text{It either does not given any or gives very}& \text{It gives very high interest to the depositors}.\\ \text{low interest to the depositors.}& \\ 2.\text{It provides overdraft facility.}& \text{It does not provide overdraft facility.}\\ 3.\text{Money can be withdrawn at any time.}& \text{Money can be withdrawn only after a certain}\\ & \text{period of time.}\end{array}$$