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Question
Explain the following term/concept.
Commercial bills
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Solution
These are the trade bills accepted by commercial banks. Trade bills are negotiable instruments or bills drawn by a seller on the buyer for the value of goods sold under credit sales. Banks can rediscount the bills any number of times till the maturity of the bill.
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RELATED QUESTIONS
Central government is a borrower in the money market through the issue of ______.
Match the pair.
| Group ‘A’ | Group ‘B’ |
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| b) Money market | 2) New issue market |
| c) Primary market | 3) Trading of commodities |
| d) Commercial paper | 4) Short term fund |
| 5) Trading of financial securities | |
| 6) Share market | |
| 7) Unsecured promissory note | |
| 8) Secured promissory note |
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