Which of the following statements about Overdraft and Cash Credit accounts are correct?
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A borrower can withdraw funds up to the credit limit and pay interest only on the amount withdrawn.
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Overdraft accounts are always secured by pledge or hypothecation of goods.
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Cash Credit accounts are advances secured by pledge or hypothecation of goods or products.
1
1 only
2
2 only
3
3 only
4
1 and 2 only
5
1 and 3 only