ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commercial bill
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Commercial papers
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Call money
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None of the above
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Detailed explanation-1: -A commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms. Commercial bills are known as trade bills or accommodation bills.
Detailed explanation-2: -A commercial bill is a form of bills of exchange used to finance the working capital of firms. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
Detailed explanation-3: -A self-liquidating loan (or self-liquidating offer) is a form of short-or intermediate-term credit instrument that is repaid with money generated by the assets it is used to purchase.
Detailed explanation-4: -Certificate of Deposit (CD’s) is a negotiable term deposit accepted by commercial banks. It is usually issued through a promissory note. CD’s can be issued to individuals, corporations, trusts, etc. Also, the CD’s can be issued by scheduled commercial banks at a discount.
Detailed explanation-5: -Some common examples of short-term investments include CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills. Usually, these investments are high-quality and highly liquid assets or investment vehicles.