📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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 .

    Practice Next
    More Alternate Sources of Finance Questions

    Relevant for Exams:

    ask-question