Question : Which money market instrument is highlighted in the given statement? Statement: If the seller needs money before the due date he can get it discounted from the bank.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Correct Answer: Commercial bill
Solution : Commercial bill is an negotiable instrument which can be easily transfer it is used to finance the credit sales. The rose the bill and buy receipts the buyer honours the bill on the due date. If the cellular needs money be for the due date he can get the bill discounted from the bank. It is a short term instrument generally should for a period of 90 days.
Hence, option D is correct.
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Question : Which money market instrument is highlighted in the given statement? Statement: It is issued by the schedule commercial banks and The Financial institutions like IDBI IFSC ICICI and exim Bank.
Option 2: Call money
Option 3: Certificate of deposits
Question : They are highly liquid and have assured yield and negligible risk of default due to soundness of RBI. Which money Market instrument is highlighted in the given statement?
Option 1: Commercial bill
Option 4: Treasury bill
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