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 Interest is charged on the amount actually withdrawn.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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