Here is the answer.
Frame : A resizable, movable window with title bar and close button. Usually it contains Panels. It is Derived From Window. Default layout is BorderLayout.
Panel : A region internal to a Frame or another Panel. Used for grouping components together. Not bounded by a visible border. You can change background colour of a panel to delimit it though. Lives inside some enclosing Container. It is Derived From Container. Default layout is FlowLayout.
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