Question : It is a bill of exchange used by Business firms to finance their working capital requirements.Which money market instrument is highlighted in the given statement?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Certificate of deposits
Option 4: Commercial bill
Correct Answer: Certificate of deposits
Solution : Commercial bill is a bill of exchange used by Business firm to finance their working capital requirements. It is a short term negotiable,self liquidating instrument which is used to finance the credit sale of firms.
Hence, option C is correct.
Question : Which money market instrument is highlighted in the given statement? Statement: It is used to finish the credit sales.
Option 2: Call money
Question : It is a short term finance repayable on demand it is used for interbank transactions. Which money market instrument is highlighted in the given statement?
Option 3: Call money
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
Question : Case Study 22:
DEF Ltd. is a well-established company planning to expand its global operations through acquisitions.
Question :
To finance its acquisition plans, DEF Ltd. is evaluating short-term financing options. Which money market instrument might it use?
Option 1: Commercial paper
Option 3: Treasury bill
Option 4: Corporate bond
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