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Question : Which of the following statement is incorrect?
 

Option 1: Commercial bill is a self liquidating instrument

Option 2: Commercial bill is used for long term finance

Option 3: Commercial bill is used to finance the credit sale of firms

Option 4: None of the above


 


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Commercial bill is used for long term finance


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

Hence, option B is correct.

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