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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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