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

Question

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

Team Careers360 · Accepted Answer

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.

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Question : Which of the following statement is incorrect? Option 1: Commercial bill is a self liquidating instrumentOption 2: Commercial bill is used for long term financeOption 3: Commercial bill is used to finance the credit sale of firmsOption 4: None of the above

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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

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.