Question
A facility to withdraw money from a current bank
account without having a credit balance but is limited to the extent of the borrowing limit, which the commercial bank fixes is called:Solution
Cash credit is a facility to withdraw money from a current bank account without having a credit balance but is limited to the extent of the borrowing limit, which the commercial bank fixes. The interest in this facility is not charged on the borrowing limit, which the bank gives but on the daily closing balance
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