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    • Question

      Under Tandon Committee’s Second Method of Lending, the

      borrower must finance what minimum portion of the total current assets from long-term funds?
      A 25% of Current Assets Correct Answer Incorrect Answer
      B 100% of Core Current Assets Correct Answer Incorrect Answer
      C 25% of Working Capital Gap Correct Answer Incorrect Answer
      D 25% of Total Current Assets Correct Answer Incorrect Answer
      E 75% of Current Liabilities Correct Answer Incorrect Answer

      Solution

      The borrower must bring 25% of total current assets from long-term funds under the Second Method. The bank funds the remaining gap.

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