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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?

Option 1: Treasury bill

Option 2: Commercial paper

Option 3: Certificate of deposits 

Option 4: Commercial bill


 


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Certificate of deposits 


Solution : Commercial bill is a bill of exchange used by Business firm to finance their working capital requirements. It is a short term negotiable,self liquidating instrument which is used to finance the credit sale of firms.

Hence, option C is correct.

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