Question : Which of the following statement is incorrect?
Option 1: Commercial bill is a self liquidating instrument
Option 2: Commercial bill is used for long term finance
Option 3: Commercial bill is used to finance the credit sale of firms
Option 4: None of the above
Correct Answer: Commercial bill is used for long term finance
Solution : Commercial bill is a bill of exchange used by Business firms to finance their working capital requirements. It is a short term,negotiable money market instrument. It is used to finance the credit sale of firms.
Hence, option B is correct.
Question : It is a bill of exchange used by Business firms to finance their working capital requirements.Which money market instrument is highlighted in the given statement?
Question : Which of the following statement is correct? Statement 1: Commercial bill used to finance the cash sales. Statement 2: Commercial bill is a short term instrument generally issued for a period of 90 days.
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.
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