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Identify and explain the concept from given illustrations.XYZ Bank Provides cash credit, overdraft facility and loan to its customer. |
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Answer» Concept: Providing loans and advances by Commercial Bank Explanation : Commercial Bank mobilize savings and lend these funds to institutions and individuals for various purposes. Based on tenures, loans include call loans, short term, medium term and long term loans. Longer the duration of the loans, greater will be the rate of interest. Beside this bank also provide cash credit, overdraft facility as well as discounting of bills of exchange. |
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