How demand deposits are different from time deposits? Explain.
Demand deposits are the deposits which can be withdrawn on demand at any point of time. Also these are chequable deposits, i.e. cheques can be drawn against such deposits.
On the other hand, time deposits are the deposits which cannot be withdrawn before a specified period of time. These deposits are non-chequable, i.e. one cannot draw cheques against such deposits.
It includes:
(i) Fixed deposits
(ii) Recurring deposits