Question : Statement 1: Commercial bill is a short-term negotiable instrument used for financing trade.
Statement 2: Commercial bill is a long-term bond issued by the government.
Option 1: Statement 1 is true, and statement 2 is true.
Option 2: Statement 1 is true, but statement 2 is false.
Option 3: Statement 1 is false, and statement 2 is true.
Option 4: Statement 1 is false, and statement 2 is false.
Correct Answer: Statement 1 is true, but statement 2 is false.
Solution : The correct answer is (b) Statement 1 is true, but statement 2 is false.
Statement 1 is true. A commercial bill is a short-term negotiable instrument used for financing trade. It is a written promise to pay a certain sum of money on a specified date. Commercial bills are typically issued by buyers of goods and services to sellers, and they can be discounted with banks or other financial institutions to raise cash.
Statement 2 is false. A commercial bill is not a long-term bond issued by the government. Long-term bonds are issued by governments and corporations to raise capital.
Question : Statement 1: Commercial paper is a type of long-term debt instrument.
Statement 2: Commercial paper is used by companies to raise short-term funds.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile