Question : Which of the following is a feature of a commercial bill?
Option 1: Low credit risk
Option 2: High interest rate
Option 3: Fixed maturity period
Option 4: No collateral required
Correct Answer: Fixed maturity period
Solution : The correct answer is (c). Fixed maturity period.
A commercial bill, also known as a trade bill or a bill of exchange, is a financial instrument used in trade transactions. It represents a written order from one party to another to pay a specified amount at a future date. A key feature of a commercial bill is that it has a fixed maturity period, which is the specific date on which the payment is due.
Question : Which of the following is a feature of a treasury bill?
Option 1: High credit risk
Option 4: No liquidity risk
Question : Which of the following is a feature of a commercial paper?
Option 1: Fixed maturity period
Option 2: High liquidity
Option 3: Low interest rate
Option 4: No credit risk
Option 1: Low liquidity
Option 2: High credit rating requirement
Option 3: High interest rate
Option 4: No fixed maturity period
Question : Which of the following is a feature of a certificate of deposit (CD)?
Option 1: High liquidity
Option 2: Low interest rate
Question : Which of the following is a feature of a money market instrument?
Option 2: long maturity period
Option 3: Low liquidity
Option 4: Low interest rate
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