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प्रश्न
It is a formal and revolving credit agreement under which the borrower is allowed to borrow upto the specified limit.
विकल्प
Cash credit
Overdraft
Discounting of bills
None of these
उत्तर
Cash credit
Explanation:
Cash credit is a formal, revolving credit agreement under which the borrower is allowed to borrow up to the specified limit. The amount may be withdrawn in instalments. Interest is charged on the amount actually withdrawn. The borrower is required to offer security in the form of tangible assets or guarantees.
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संबंधित प्रश्न
Write a short note discounting of bills of exchange.
What is an overdraft?
For which of the following company has to keep it's assets on mortgage?
This implies procuring cash from a bank in exchange for credit instruments.
______ are generally secured by assets or guarantees.
A company has to meet its short-term financial needs. It is considering whether it should raise loans from commercial banks or invite public deposits. Discuss the merits and demerits of each form.
Commercial banks generally provide long-term loans.
State the various forms of borrowing from commercial banks.
What are the advantages of borrowing from commercial banks?
What are the disadvantages of borrowing from commercial banks?
