Interest on an overdraft is generally calculated on:

Type: MCQ • Marks: 1

A. The amount utilised, according to the applicable terms and period

B. The entire annual budget

C. The institution's total assets

D. The number of transactions only

Explanation

The precise basis depends on the overdraft agreement, but interest is generally linked to the amount outstanding and the relevant period.

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UPSC Principal & Vice Principal Management Finance Administration

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