Multiple Choice Questions on It is used as an alternative to bank borrowing for large and creditworthy companies ........ for Commerce 12th Preparation

Business Studies (12th)

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Indian Economy - Understanding the basics of Indian economic system

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    It is used as an alternative to bank borrowing for large and creditworthy companies,

    Commercial bill

    Incorrect Answer

    Commercial papers

    Correct Answer

    Call money

    Incorrect Answer

    None of the above

    Incorrect Answer
    Explanation:

    - 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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