Question : Which money market instrument is highlighted in the given statement? Statement: It is used to finish the credit sales.
Option 1: Treasury bill
Option 2: Call money
Option 3: Certificate of deposits
Option 4: Commercial bill
Correct Answer: Commercial bill
Solution : Commercial bill is an negotiable instrument which can be easily transferred it is used to finance the credit sale.The seller draws the Bill and the buyer accept it. The buyer honours the bill on the due date.
Hence, option D is correct.
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 2: Commercial paper
Question : It is a short term finance repayable on demand it is used for interbank transactions. Which money market instrument is highlighted in the given statement?
Option 3: Call money
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 asset is highlighted in the given statement? Statement : It refers to that financial instrument or security example shares debentures treasury bills commercial paper etc.
Option 1: Current assets
Option 2: Financial assets
Option 3: Quick assets
Option 4: None of the above
Question : Case Study 22:
DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.
Question :
To finance its acquisition plans, DEF Ltd. is evaluating short-term financing options. Which money market instrument might it use?
Option 1: Commercial paper
Option 3: Treasury bill
Option 4: Corporate bond
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