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Which credit facility is mainly intended to meet short-term business requirements?

easy Q2 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which credit facility is mainly intended to meet short-term business requirements?
AEducation Loan
BAdvance
CTerm Loan
DHousing Loan
Step-by-Step Solution

  1. Step 1: Identify purpose

    The question focuses on short-term business needs.

  2. Step 2: Match with correct facility

    Advances are provided for immediate and short-term requirements.

  3. Final Answer:

    Advance → Option B

  4. Quick Check:

    Working capital needs are met through advances ✅
Quick Trick: Short-term business need = Advance.
Common Mistakes:
  • Selecting long-term loans for working capital.
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