Question

Interest rate in cash credit is normally ______ bank credit account.

• A. higher than
• B. same
• C. lower than
• D. none of the above

Answer 1

Answer: (C)

lower than

Interest rate in cash credit is normally lower than bank credit account. Cash credit is a type of borrowing which can be obtained from the bank savings account without having credit balance, whereas bank credit refers to a loan which is issued by the banking company and which are to be repaid by the borrower with a higher interest rate.