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Which pair is correctly matched according to banking usage?

medium Q15 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which pair is correctly matched according to banking usage?
ALoan – Short-term; Advance – Long-term
BLoan – Working capital; Advance – Housing
CLoan – Fixed tenure; Advance – Short-term need
DLoan – Repayable on demand; Advance – EMI-based
Step-by-Step Solution

  1. Step 1: Compare duration and purpose

    The question tests conceptual matching.

  2. Step 2: Apply standard banking definitions

    Loans have fixed tenure, advances meet short-term needs.

  3. Final Answer:

    Loan – Fixed tenure; Advance – Short-term need → Option C

  4. Quick Check:

    Tenure-based distinction confirms the pair ✅
Quick Trick: Fixed tenure vs short-term need.
Common Mistakes:
  • Reversing loan and advance characteristics.
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