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      Question

      Which of the following credit facilities is typically

      used for financing the day-to-day operations of a business?
      A Term Loan Correct Answer Incorrect Answer
      B Cash Credit Correct Answer Incorrect Answer
      C Bank Guarantee Correct Answer Incorrect Answer
      D Letter of Credit Correct Answer Incorrect Answer
      E Overdraft Correct Answer Incorrect Answer

      Solution

      Cash Credit is a short-term financing facility typically used for covering day-to-day business operations such as purchasing current assets like raw materials, maintaining receivables, and managing stocks

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