Answer-<p>Wh ich of the following best describes "Drawing Power" in context to a Cash Credi...

Drawing Power DP is the amount a borrower can withdraw from the sanctioned limit based on the current value of stock and receivables, adjusted by the banks margin policy.

Question

Wh ich of the following best describes "Drawing Power" in context to a Cash Credit facility given by a bank ?

A The total credit limit sanctioned by the bank to the borrower for the purpose of meeting working capital requirements

B The total amount of money a borrower can withdraw from the bank, across its various accounts maintained with the bank

C The value of assets pledged by the borrower to secure the loan, adjusted for repayments

D The amount that a borrower can withdraw from the sanctioned credit limit based on the latest stock and receivables statement.

E The change in the repayment schedule based on the inventory and sales position of the company on a quarterly basis.

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Wh ich of the following best describes "Drawing Power" in context to a Cash Credit facility given by a bank ?

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