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Loans from banks, debentures, public deposits and trade credit together form:
AFree reserves
BBorrowed funds
COwner's funds
DInternal funds
Answer & Solution
Correct answer: B. Borrowed funds
1. They must be repaid after a set period.
2. A fixed rate of interest is paid.
3. These are borrowed funds.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
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