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      Question

      Which of the following is a non-fund-based credit

      facility provided by banks?
      A Cash Credit Correct Answer Incorrect Answer
      B Overdraft Correct Answer Incorrect Answer
      C Working Capital Term Loan Correct Answer Incorrect Answer
      D Letter of Credit Correct Answer Incorrect Answer
      E Export Packing Credit Correct Answer Incorrect Answer

      Solution

      Letters of Credit are non-fund-based facilities where banks provide payment guarantees but do not disburse funds unless invoked.

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