Select a word or a term or phrase which can substitute the following statement:
Permission to withdraw over and above the credit balance from the current account.
Loan facility
Cash credit facility
Overdraft facility
None of these
A
Loan facility
B
Overdraft facility
C
None of these
D
Cash credit facility
Open in App
Solution
Verified by Toppr
Overdraft facility is usually given to the current account holders to resolve short-term financial crisis. It is a facility attached to an existing account. Amount over and above the credit balance can be withdrawn with a limit as agreed for.
Cash credit and Loan are separate accounts opened for the purpose of raising funds.
Was this answer helpful?
0
Similar Questions
Q1
Select a word or a term or phrase which can substitute the following statement:
Permission to withdraw over and above the credit balance from the current account.
View Solution
Q2
Give the word / term or phrase which can substitute each of the following statement.
The credit balance of Trading Account.
View Solution
Q3
Give the word / term or phrase which can substitute each of the following statement.
The credit balance of Profit and Loss Account.
View Solution
Q4
Give one word, term or phrase which can substitute each of following statements: A list of Debit and Credit Balances of the ledger accounts.
View Solution
Q5
Give the word, term or phrase which can substitute the following statement. A statement of accounts prepared from the balances of ledger accounts.