An arrangement where a bank allows a borrower to overdraw up to a certain limit for working capital financing is known as:

CS Executive · Financial and Strategic Management · PYQS · December 2019
An arrangement where a bank allows a borrower to overdraw up to a certain limit for working capital financing is known as:
(A) Bridge Loan
(B) Cash Credit
(C) Term Loan
(D) Leverage Buy Out

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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