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      Question

      Which of the following is true about Cash Credit (Bank

      Loan)? I. Cash credit is an arrangement whereby the bank allows the borrower to draw amount up to a specified limit. II. Interest is charged on the amount actually withdrawn.
      A Only I is true. Correct Answer Incorrect Answer
      B Only II is true Correct Answer Incorrect Answer
      C both I & II are true Correct Answer Incorrect Answer
      D None is true Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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