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    Question

    Which of the following loan types is most appropriate

    for financing seasonal working capital needs of a trader?
    A Term Loan Correct Answer Incorrect Answer
    B Cash Credit Correct Answer Incorrect Answer
    C Demand Loan Correct Answer Incorrect Answer
    D Overdraft Correct Answer Incorrect Answer
    E Bills Discounting Correct Answer Incorrect Answer

    Solution

    Cash credit is a short-term source of finance allowing businesses to withdraw funds against a borrowing limit to meet day-to-day operational needs, especially seasonal fluctuations.

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