Answer / Santosh Kumar Bhagat

Both `nchar` and `nvarchar` are used for character data in SQL Server, but they have different fixed-length handling behaviors. `nchar` will always take up the specified number of bytes even if the string is shorter, whereas `nvarchar` only takes up the necessary amount of space when the string is shorter than its maximum length. For example, creating an `nchar(10)` column would always use 10 bytes, while creating an `nvarchar(10)` column would only use the actual number of bytes needed for the stored string.

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