Question : Which money market instrument is highlighted in the given statement?
Statement: If the seller needs money before the due date he can get it discounted from the bank.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Answer (1)
21st Jan, 2024
Correct Answer:
Commercial bill
Solution : Commercial bill is an negotiable instrument which can be easily transfer it is used to finance the credit sales. The rose the bill and buy receipts the buyer honours the bill on the due date. If the cellular needs money be for the due date he can get the bill discounted from the bank. It is a short term instrument generally should for a period of 90 days.
Hence, option D is correct.
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