Question : Case Study 14:
ABC Ltd. is a startup in the e-commerce industry looking to expand its product offerings.
Question :
To raise short-term funds for marketing its expanded product range, which money market instrument might ABC Ltd. use?
Option 1: Debenture
Option 2: Call money
Option 3: Corporate bond
Option 4: Equity share
Correct Answer: Call money
Solution : The correct answer is (b) Call money
To raise short-term funds for marketing its expanded product range, ABC Ltd. might consider using call money. Call money is a short-term finance option borrowed or lent in the interbank market for very short durations, usually overnight. It's often used for short-term funding needs and would be suitable for supporting marketing initiatives for the newly expanded product offerings.
Question : Case Study 19:
MNO Ltd. is a startup in the food and beverage sector aiming to raise funds for expanding its product range.
To raise short-term funds for marketing its expanded product range, which money market instrument might MNO Ltd. use?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile