Financial Awareness - Risk, Stability & Emerging Finance
Which type of bank loan is repayable on demand by the bank and is usually unsecured and short-term?
Which type of bank loan is repayable on demand by the bank and is usually unsecured and short-term?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand the loan types
Demand Loan is characterized by repayment on demand and is generally unsecured and short-term.Step 2: Analyze other options
Term Loan is fixed tenure, Cash Credit is a working capital facility, and Bill Discounting involves purchase of bills before maturity, not repayable on demand.Final Answer:
Demand Loan → Option AQuick Check:
Demand Loan = repayable on demand, unsecured, short-term ✅
Quick Trick: Demand Loan = repayable whenever bank demands.
Common Mistakes:
- Mistaking Demand Loan for Term Loan due to short-term nature.
Master "Risk, Stability & Emerging Finance" in Financial Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Financial Awareness Quizzes