Short term credit from the Reserve bank of India to state government to bridge temporary mismatches in cash flows is known as:

CA Foundation · Business Economics · MTP · May 2026
Short term credit from the Reserve bank of India to state government to bridge temporary mismatches in cash flows is known as:
(A) A. Ways and Means Advance
(B) B. Commercial credit by RBI
(C) C. short term facility
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Ways and Means Advance

Topics: Public Finance

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