Advertisements
Advertisements
Questions
What is Cash Credit?
What do you mean by cash credit?
What is meant by ‘Cash Credit’?
Advertisements
Solution
Banks offer cash credit, a short-term loan against current assets like bonds, stocks, and shares. For cash credit, the bank opens a second current account in the borrower’s name, allowing them to withdraw the borrowed money as needed. The bank only charges interest on the amount withdrawn, not the whole amount sanctioned.
APPEARS IN
RELATED QUESTIONS
______ shares do not carry voting rights.
Write a short note on:
Cash Credit
Explain in brief Discounting of bills of exchange.
Name the source of finance wherein receivables on account of the sale of goods or services are sold at a discount.
Differentiate between owned funds and borrowed funds.
State any three sources of borrowed funds.
Name three sources of owned funds for business.
Which source is the best source of raising borrowed funds for a business? and why?
Long-term finance is required for meeting day-to-day requirements.
