Banking · Working Capital Assessment
A construction firm applies for a working capital limit based on the Cash Budget Method. The projected cash flows for a quarter (3 months) are: Total Cash Outflows are ₹1,200 Lakh uniformly distributed per month (i.e., ₹400 Lakh/month). Total Cash Inflows are ₹900 Lakh uniformly distributed per month (i.e., ₹300 Lakh/month). The opening cash balance at the start of the quarter is ₹50 Lakh, and a minimum cash balance of ₹10 Lakh is mandatory. If the bank sanctions a limit to cover the peak cumulative deficit for the quarter, what is the required Cash Credit limit?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1₹300 Lakh
- 2₹260 Lakh✓
- 3₹200 Lakh
- 4₹250 Lakh
Correct answer
₹260 Lakh
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Working Capital Assessment MCQs →Want more practice questions on Working Capital Assessment?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Working Capital Assessment