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      Question

      Which of the following is an example of funded credit

      facility?
      A Letter of Credit Correct Answer Incorrect Answer
      B Bank Guarantee Correct Answer Incorrect Answer
      C Cash Credit Correct Answer Incorrect Answer
      D Performance Guarantee Correct Answer Incorrect Answer
      E Forward Contract Correct Answer Incorrect Answer

      Solution

      Cash Credit involves actual disbursal of funds, making it a funded facility. Others are contingent or non-funded.

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