Question

What does the concept of "Drawing Power" refer to in a

Q: Answer-What does the concept of 'Drawing Power' refer to in a Cash Credit facility?

Drawing Power DP is the amount a borrower can withdraw from the sanctioned limit based on the current value of stock and receivables, adjusted by the banks margin policy

Cash Credit facility?

A The total amount of money a borrower can withdraw from the bank.

B The value of assets pledged by the borrower to secure the loan.

C The amount that a borrower can withdraw from the sanctioned credit limit based on the latest stock and receivables statement.

D The repayment schedule agreed upon for the loan.

E The total credit limit sanctioned by the bank to the borrower.

Practice Next

More Financial Management Questions

Which should be the third sentence after rearrangement?
Which of the following is the third sentence of the passage?
In the questions given below, a sentence has been divided into four fragments (A), (B), (C) and (D) and is arranged (not necessarily in the correct order)....
In the question given below, a set of sentences is given, which when properly sequenced, form a coherent paragraph. Arrange the sentences in the correc...
Which is the FOURTH sentence of the paragraph after rearrangement?
Which is the SIXTH (LAST) sentence of the paragraph after rearrangement?
In each question below, a sentence is given with a part of it printed in bold and underlined. That part may contain a grammatical error. Each sentence ...
Parts of a sentence are given below in jumbled order. Arrange the parts in the correct order to form a meaningful sentence.

(A) parasite in the gut...
In the given question, a sentence has been broken into four parts and the parts are jumbled. Choose the option that provides the correct way to re-arran...
1. The government of India has embarked

P. the people to choose their actual

Q. election in Jammu and Kashmir to allow

R. on a cons...

What does the concept of "Drawing Power" refer to in a

Solution