Question : Which of the following is a feature of a commercial bill?
Option 1: Low credit risk
Option 2: High interest rate
Option 3: Fixed maturity period
Option 4: No collateral required
Correct Answer: Fixed maturity period
Solution : The correct answer is (c). Fixed maturity period.
A commercial bill, also known as a trade bill or a bill of exchange, is a financial instrument used in trade transactions. It represents a written order from one party to another to pay a specified amount at a future date. A key feature of a commercial bill is that it has a fixed maturity period, which is the specific date on which the payment is due.
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