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      Question

      The limit to which a firm or company can withdraw from

      the sanctioned working capital limit is called:
      A Drawing power Correct Answer Incorrect Answer
      B Term loan limit Correct Answer Incorrect Answer
      C Credit limit Correct Answer Incorrect Answer
      D Overdraft Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Drawing Power generally addressed as โ€œDP,โ€ is an important concept for Cash Credit (CC) facility availed by banks and financial institutions. It is the limit to which a firm or company can withdraw from the sanctioned working capital limit.

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