Question on: JAMB Commerce - 2024
Which is a source of short term capital?
A
Shares
B
Overdraft
C
debenture
D
leasing
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Correct Option: B
An overdraft is a short-term loan facility offered by a bank to a current account holder. It allows the account holder to withdraw more money than they have in their account, up to a certain limit. This provides immediate access to funds to cover short-term financial needs. Shares, debentures, and leasing are typically sources of long-term capital.
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