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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 Interest is charged on the amount actually withdrawn.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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