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      Question

      In working capital assessment, which method is primarily

      used under the Tandon Committee Recommendations for limits above β‚Ή10 crore?
      A Operating cycle method Correct Answer Incorrect Answer
      B Cash budget method Correct Answer Incorrect Answer
      C First method of lending Correct Answer Incorrect Answer
      D Projected Balance Sheet method Correct Answer Incorrect Answer
      E Turnover method Correct Answer Incorrect Answer

      Solution

      For large borrowers, banks use the cash budget method to assess working capital requirements.

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