Question : Which of the following statement is incorrect?
Option 1: Certificate of deposit issued against the deposits kept by companies and institutions.
Option 2: Commercial bill is short term borrowing instrument issued by RBI.
Option 3: Call money is a short term finance generally used by banks to maintain cash reserve ratio
Option 4: None of the above
Answer (1)
15th Jan, 2024
Correct Answer:
Commercial bill is short term borrowing instrument issued by RBI.
Solution : Treasury bill is the instrument of short term borrowing issued by RBI. Commercial bill is a short term instrument used to finance working capital requirements of the business.
Hence, option B is correct.
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