What is Bank credit? Explain its types.

1.	What is Bank credit? Explain its types.
Answer» The short term loan provided by commercial banks to business firms is called bank credit. On the agreed terms, the bank credits the loan amount in the business firm/client’s account. Bank credit includes: Loans and advances. Cash Credit. Bank Overdraft. Discounting of Bills.

Answer»

The short term loan provided by commercial banks to business firms is called bank credit. On the agreed terms, the bank credits the loan amount in the business firm/client’s account.

Bank credit includes:

Loans and advances.
Cash Credit.
Bank Overdraft.
Discounting of Bills.

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What is Bank credit? Explain its types.

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