BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The rate of interest charged for the loan by the banker compared to overdraft and cash credit is generally
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High
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Low
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Same
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Based on the amount
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Explanation:
Detailed explanation-1: -Cash credit is referred to as a short term business loan that is offered to businesses for maintaining the working capital, while overdraft facilities are offered to businesses and individuals who wish to withdraw more than their available balance in the bank account.
Detailed explanation-2: -A CC limit or cash credit limit allows you to withdraw money or issue cheque up to the approved CC limit, even if there is no balance in the account. It is a short term credit facility generally for 12 month, which is renewable after every 12 months.
Detailed explanation-3: -Explanation: An ante-dated cheque is one which bears a date earlier than the date of issue.
There is 1 question to complete.