ASSERTION: Overdraft implies procuring cash from a bank in exchange for credit instruments. REASONING: The holder of the Discounting of Bills of Exchange remains liable to the bank if the instrument is dishonoured on maturity.

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A is false, but R is true. Explanation: An overdraft is a temporary facility allowing withdrawals beyond the account balance, not necessarily obtained “in exchange for credit instruments.” Discounting bills means selling credit instruments for cash; if the bills are dishonoured, the holder remains liable to the bank.

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