Question

If a WMA is not repaid within 90 days, it is treated as:

• A. Long-term loan
• B. Overdraft (OD)
• C. Government grant
• D. Currency note issue

Answer 1

Answer:

B. Overdraft (OD)

WMA are short-term advances that must be repaid within 90 days. If the government fails to repay within this period, the outstanding amount is converted into an Overdraft, which usually carries higher interest and stricter limits.