State with reasons whether the following statements are True or False.
In cash credit, customers account is credited by a bank with the sanctioned amount.

True

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False

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Solution

The correct option is A True
Cash credit is a facility given to current account holder of the bank, to withdraw money even when there is no credit balance.
There is a limit fixed to the borrowing. The interest on this facility is charged on the running balance and not on the borrowing limit.

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State with reasons whether the following statements are True or False.In cash credit, customers account is credited by a bank with the sanctioned amount.

The correct option is A TrueCash credit is a facility given to current account holder of the bank, to withdraw money even when there is no credit balance. There is a limit fixed to the borrowing. The interest on this facility is charged on the running balance and not on the borrowing limit.

State with reasons whether the following statements are True or False.
In cash credit, customers account is credited by a bank with the sanctioned amount.

The correct option is A True
Cash credit is a facility given to current account holder of the bank, to withdraw money even when there is no credit balance.
There is a limit fixed to the borrowing. The interest on this facility is charged on the running balance and not on the borrowing limit.