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Displacement: it is the shortest distance covered by an object between final and initial position
velocity: it is the rate of change of displacement of a moving body it is a vector quantity it can be 0 positive or negative

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Displacement is the vector difference between the ending and starting positions of an object. It may be very different from the distance the object has travelled along the way. Velocity is the rate at which displacementchanges with time. It is a vector, too.