ECONOMICS (CBSE/UGC NET)

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: -The discount market is where financial intermediaries such as commercial banks discount short-term genuine trade bills.

Detailed explanation-3: -The organised sector of the money market consists of the Reserve Bank of India, commercial banks, companies lending money, financial intermediaries such as the Life Insurance, Credit and Investments Corporation of India, Unit Trust of India, Land Mortgage Banks, Cooperative Banks, Insurance Companies etc.

Detailed explanation-4: -Commercial bills, also a money market instrument, works more like the bill of exchange. Businesses issue them to meet their short-term money requirements.

Detailed explanation-5: -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.