Demand deposits can be withdrawn ___, while fixed deposits can only be withdrawn after a specific period.

Anytime

True or False: Fixed deposits can be withdrawn using cheques.

False, fixed deposits cannot be withdrawn through cheques.

Fill in the blank: Commercial banks are also known as ___ because they are organized similarly to joint stock companies.

Joint stock banks

What is the primary characteristic of cash credit provided by commercial banks?

Cash credit is extended based on the borrower's requirements and credit limit, where the borrower pays interest only on the amount actually withdrawn.

Fill in the blank: An overdraft facility allows an account holder to withdraw more money than what is available in their account, and they must pay interest on the ___ amount withdrawn.

Excess

Fill in the blank: Commercial banks assist in transferring funds between locations through cheques and ___.

Drafts

What interest payment structure is associated with overdraft facilities?

Borrowers must pay interest on the excess amount withdrawn beyond their account balance.

What is the significance of the credit limit in cash credit facilities?

The credit limit determines the maximum amount that a borrower can withdraw under cash credit, influencing their borrowing capacity.

True or False: Commercial banks only support large enterprises and do not provide financial assistance to traders.

False. Commercial banks support both traders and industrialists by providing essential financial assistance.