Business Studies

Distinction between:
Overdraft and Cash Credit.


SOLUTION
  Overdraft  Cash Credit
1)Meaning:
It is a credit facility given to current account holder to draw more than the credit balance in his account, subject to overdraft limit sanctioned.
1)Meaning:
It is a loan facility given by a bank in which certain amount is called in the account of the customer. 
2)Duration:
Overdraft is a temporary loan given for a short period.
2)Duration:
Cash credit facility is for longer period than overdraft facility.
3)Interest:
Interest is changed on the actual amount overdrawn.
3)Interest:
Interest is charged on the amount actually withdrawn.
4) To whom facility given:
Overdraft facility is given only to current account holder.
4) To whom facility given:
Cash credit facility is given to regular bank customers and even to outsiders.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Subjective Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 202
Enroll Now For FREE

Realted Questions

Q1 TRUE/FALSE Medium
State the following statement is True or False:
The persons who are trustees, agents and managing partners of the company are the directors.
  • A. True
  • B. False

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
In order to reduce the risk of heavy insurance the insurer passes on some business to the other company, it is called _______________.
  • A. Reinsurance
  • B. Double Insurance
  • C. Joint Insurance Policy
  • D. Separate Insurance

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 TRUE/FALSE Medium
State whether the following statement is True or False.
Yours faithfully is an example of complementary close.
  • A. True
  • B. False

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Matrix Medium
Match the list 1 with list 2.
Direct Debits Debit/Credit Card + PIN
Credit card No credit facility
Debit card Need not have money in the account to obtain this.
ATM Mobile banking

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Single Correct Medium
___________ is a satellite based media services provided by cellular service providers.
  • A. VSAT
  • B. DTH
  • C. Cellular mobile
  • D. All of the above

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer