1.Clayton’s Rule is based on the principle of “first in, first out.” 2.Clayton’s Rule mainly applies to savings bank accounts. Which of the statements given above is/are correct?

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1.Clayton’s Rule is based on the principle of “first in, first out.”

2.Clayton’s Rule mainly applies to savings bank accounts.

Which of the statements given above is/are correct?

A1 only

B2 only

CBoth 1 and 2

DNeither 1 nor 2

Answer:

Statement 1 is correct. Statement 2 is incorrect because Clayton’s Rule mainly applies to overdraft and cash credit accounts, not savings accounts.