MC29 Which of the following is a type of credit facility offered by banks to their customers to withdraw more money than what is available in their account?
A. Overdraft
B. Term loan
C. Cash credit
D. Letter of credit
Answer:A
MC29 Which of the following is a type of credit facility offered by banks to their customers to withdraw more money than what is available in their account?
A. Overdraft B. Term loan C. Cash credit D. Letter of credit
Explanation: Overdraft is a type of credit facility offered by banks to their customers to withdraw more money than what is available in their account. The customer can withdraw up to a certain limit, and interest is charged only on the amount withdrawn.