Answer: D. Banks can accept both demand and time deposits from public
Let us first understand the time and demand deposits.
Time deposits are the sum of money banks accept for a fixed term (say, for 1 year, 3 years or 5 years.) and can be withdrawn only after the term expires or at the end of the maturity. Examples are Fixed deposits, term deposits.
Demand deposits are the sum of money bank accept but can be withdrawn at any time or as per the demand of the depositor. Examples are Savings account and Current account.
Bank accepts deposit of both type from the public.
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