Advertisements
Advertisements
Question
Term loans are a source of medium-term finance.
Options
True
False
Solution
This statement is True.
APPEARS IN
RELATED QUESTIONS
Write a short note discounting of bills of exchange.
What is an overdraft?
This implies procuring cash from a bank in exchange for credit instruments.
It is a formal and revolving credit agreement under which the borrower is allowed to borrow upto the specified limit.
______ 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?