Question

    The credit facilit y availed from banks, that is

    typically used for financing the day-to-day operations of a company/firm is ___ ________
    A Revolving Credit Correct Answer Incorrect Answer
    B Term Loan Correct Answer Incorrect Answer
    C Trade Credit Correct Answer Incorrect Answer
    D Letter of Credit Correct Answer Incorrect Answer
    E Bank Guarantee Correct Answer Incorrect Answer

    Solution

    Revolving credit, or more commonly known as Cash Credit or CC limit, is a short-term financing facility typically used for covering day-to-day business operations such as purchasing current assets like raw materials, maintaining receivables, and managing stocks .

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