Question

What is the name of the short-term advance given by the RBI to the government if it shows the negative balance?

A ST Advance Correct Answer Incorrect Answer
B Overdraft Advance Correct Answer Incorrect Answer
C Wage and Means Advance Correct Answer Incorrect Answer
D Working Capital Advance Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Wage and Means Allowance is the advance which the RBI extends as a short-term interest-bearing advance if the balance in the government account shows a negative position. The limit of this advance is decided and set at the beginning of each financial year.

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