enables holders to have an overdraft facility up to a fixed limit depending upon the creditworthiness of the party.

Credit card

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Debit card

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Master card

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VISA card

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Solution

The correct option is A Credit card
Credit card enables holders to have an overdraft facility up to a fixed limit depending upon the creditworthiness of the party.

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Similar questions

Q. Bank gives overdraft facility to _____________ account holders.

Q. Overdraft facility are given to current deposit holders.

An overdraft facility of up to 2500 rupees, which would further be enhanced by the bank to 5000 rupees over time was provided in Prime Minister launched Pradhan Mantri Jan Dhan Yojana. Consider the following statements regarding Overdraft:

1) An overdraft is an advance given by allowing a customer to overdraw his saving account upto an agreed limit.

2) The security for overdrafts is usually financial assets of the account holder such as shares, debentures, life insurance policies etc.

3) Overdraft is a temporary facility and the rate of interest charged on the amount of credit used is higher than that on cash credit.

Which of the above statement(s) is/ are incorrect?

Q. Give reasons or explain the following statements:

1. Commercial banks provide agency functions to earn profits.
2. Overdraft facility is provided to current account holders.
3. Saving account deposits are usually opened by salaried class.
4. Rate of interest on fixed deposit is high.

Q. Distinguish between
Cash Credits and Overdraft Facility.

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enables holders to have an overdraft facility up to a fixed limit depending upon the creditworthiness of the party.

The correct option is A Credit cardCredit card enables holders to have an overdraft facility up to a fixed limit depending upon the creditworthiness of the party.

The correct option is A Credit card
Credit card enables holders to have an overdraft facility up to a fixed limit depending upon the creditworthiness of the party.