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Explain the difference between the terms - Overdraft and Demand Draft. |
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Answer» Overdraft: An Overdraft allows a person to borrow money for short time through current account. Having overdraft facility from a bank helps an individual or businessmen to meet with short term cash flow problems. Demand Draft: It is a cheque or a document stating to pay the amount written on this document on demand. This document is issued by the bank requesting to pay the specified amount to the person in whose name this demand draft is issued. |
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