Question
Give two differences between savings account and current accounts.

Answer

Bank $\text { Net deposits }$ Required
reserves $(20 \%)$
$\text { New loan }$
$A$ $1000$ $200$ $800$
$B$ $800$ $160$ $640$
$C$ $640$ $128$ $512$
$-$ $-$ $-$ $-$
Other banks $2048$ $409$ $1639$
Total $5000$ $1000$ $4000$
Savings accountCurrent account
$1.$ This account is meant for individuals to save their money and meet their future financial requirementsThis account is a running account, for daily operations i.e. no. of transactions can take place during a day
$2.$ Less liquidity as compared to current accountMore liquidity as compared to savings account
$3.$ Bank provides interest on this account No interest is provided
$4.$ Withdrawals during a day are limitedWithdrawals during a day are unlimited
$5.$ Overdraft facility is not allowed on savings account Overdraft facility is allowed on current account6. Less amount is required to open a savings accountMore amount is required to open a current account

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