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Q. Can you explain about Overdrafts?
Overdraft means an agreement with a bank by which a current account-holder is allowed to withdraw more than the balance to his credit up to a certain limit. There are no restrictions for operation of overdraft limits. The interest is charged on daily overdrawn balances. The main difference between cash credit and hovercraft is that overdraft is allowed for a short period and is a temporary accommodation whereas the cash credit is allowed for a longer period. Overdraft accounts can either be clean overdrafts, party secured or fully secured.
Institutional Clearing Member (ICM) A Financial Institution has to subscribe to at least 100 equity shares of Rs.10,000 each to become an Institutional Clearing Member of COFEI
APPLICABILIYI OF THE OPERETING CYCLE
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Question 1 What are the total cash inflows for project A? Discount rate (%) NPV of A (Rs.) 0
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