BANKING AFFAIRS

Detailed explanation-1: -Commercial bills market is a part of:(a) the organized money market. They are bills that are issued by organizations that are part of an industry. The unorganized market would not use standardized contracts, which is what commercial bills are. Commercial bills are a part of the debt market and not the stock market.

Detailed explanation-2: -Money markets include markets for such instruments as bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos).

Detailed explanation-3: -Commercial bill is a bill of exchange used to finance the credit sales of firms. It is a short term, negotiable and self liquidity instrument. In case of goods sold on credit, the buyer is liable to make the payment on a specific date in future.

Detailed explanation-4: -3. Some of the common instruments of the money market are Call Money, Commercial Bills, Certificates of Deposits, etc.

Detailed explanation-5: -Commercial bills are also called “bills of exchange, ” which are used by firms for financing their working capital. In addition, it is used as a short-term negotiable and self-liquidating tool for funding credit sales. Commercial bills are used when the selling of goods takes place on credit.