ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commercial Paper Market
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Treasury Bill Market
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Commercial Bill Market
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Capital Market
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Detailed explanation-1: -Solution. The market for buying and selling of Commercial Bills of Exchange is known as a Commercial Bill Market.
Detailed explanation-2: -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.
Detailed explanation-3: -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-4: -Commercial bills are a part of the debt market and not the stock market.
Detailed explanation-5: -A commercial bill is essentially a bill of exchange. In a credit sale, the seller will draw a bill of exchange. The buyer of the goods will accept such bill, and the bill becomes a trade bill which is a marketable financial instrument. The seller can then go to his bank and get the bill discounted.