It is used as an alternative to bank borrowing for large and creditworthy companies,
Commercial bill
Incorrect AnswerCommercial papers
Correct AnswerCall money
Incorrect AnswerNone of the above
Incorrect AnswerExplanation:
- Commercial bill: These are short-term, negotiable instruments that businesses use to finance their working capital needs. They are backed by physical goods and are often discounted by banks.
- Commercial papers: These unsecured, short-term debt instruments are issued primarily by large, creditworthy companies. They offer an alternative to bank borrowing for these entities.
- Call money: This is very short-term borrowing, usually for a day, involving banks. It's commonly used in the interbank market rather than by companies.
- None of the above: This option would not apply, as we have relevant items listed.
Your correct answer is Commercial papers. .
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