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In the context of MSME loans, TReDS is used for:

ALong-term asset financing

BDiscounting trade receivables to improve liquidity

CProviding government subsidies

DIssuing MSME credit cards

Answer:

B. Discounting trade receivables to improve liquidity

Read Explanation:

TReDS (Trade Receivables Discounting System) helps MSMEs convert unpaid invoices into immediate cash, improving liquidity.


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