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      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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