Select Any One Of the Following Options: Which of the following is an example of non-fund-based bank credit?letter of creditbill discountingcash creditworking capital demand loan

To answer the question, we need to identify which option is an example of non-fund-based bank credit. Let's go through each option one by one:

1. Letter of credit: A letter of credit is a financial document issued by a bank that guarantees payment to a seller on behalf of a buyer. It is a form of fund-based credit as it involves the bank providing a guarantee of payment.

2. Bill discounting: Bill discounting is a process where a bank purchases a bill of exchange from a seller before its maturity date. This is also a form of fund-based credit as it involves the bank providing funds to the seller.

3. Cash credit: Cash credit is a type of loan provided by a bank to a borrower against a collateral security. This is a form of fund-based credit as it involves the bank providing funds to the borrower.

4. Working capital demand loan: A working capital demand loan is a loan provided by a bank to meet the short-term working capital requirements of a business. Similar to cash credit, this is also a form of fund-based credit as it involves the bank providing funds to the borrower.

Based on the above analysis, none of the options mentioned (letter of credit, bill discounting, cash credit, and working capital demand loan) are examples of non-fund-based bank credit.