Banks lend money by 1. Loan 2. Cash credit 3. Overdraft 4. Discounting of bill Select the correct answer

The correct answer is D. All of these.

Banks lend money in a variety of ways, including:

• Loans: A loan is a sum of money that is borrowed from a bank and must be repaid with interest over a specified period of time.
• Cash credit: A cash credit is a line of credit that a bank extends to a customer, up to a certain limit. The customer can borrow money against the line of credit as needed and repay it at any time, with interest.
• Overdraft: An overdraft is a loan that a bank allows a customer to take out when their checking account balance falls below zero. The customer must repay the overdraft amount, plus interest, within a specified period of time.
• Discounting of bills: When a business sells goods or services on credit, it may discount the bill to get the cash sooner. The bank will then collect the bill from the customer and pay the business the discounted amount, minus interest.

Banks also lend money in other ways, such as through mortgages, car loans, and student loans.