Business Studies

Financial Markets

Easy

From the following identify the short term, negotiable, self liquidating instrument used to finance the working capital requirements of business firms.

Call Money

Commercial Paper

Commercial Bill

Certificate of Deposit

✅ Correct Option: 3

A Commercial Bill is a short-term, negotiable, self-liquidating instrument used to finance the credit sales of firms. It arises from genuine trade transactions and is self-liquidating because it is repaid when the buyer makes the payment on the due date. Call money is inter-bank, Commercial Paper is issued by large companies for unsecured short-term borrowing, and Certificate of Deposit is issued by banks.

2022: 20 Aug Shift 1

From the following identify the functions of stock exchange which facilitate the spread of coducive climate for share ownership.

A. Regulation of takeover bids by Companies

B. Pricing of Securities

C. Safety of Transactions

D. Training of intermediaries of the securities market

E. Spreading of equity cult

2022: 16 July Shift 2

Which of the following statement is/are correct regarding function of Stock Exchange?

A. Providing liquidity and market ability to existing securities.

B. Training of intermediaries.

C. Undertaking steps of investor protection.

D. Promotion of fair practices and code of conduct in securities market.

E. Regulation of takeover bids by companies.

Choose the correct answer from the options given below:

2026: 29 May Shift 2

The following was not the objective of setting up the Bombay Stock Exchange:

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I (Instruments of money market)	LIST-II (Explanation)
A. Treasury Bill	I. Unsecured, negotiable, short term instruments in bearer form, issued by commercial banks and financial institutions.
B. Commercial Paper	II. Short term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period used for bridge financing.
C. Call Money	III. An instrument of short term borrowing by the Government of India.
D. Certificate of Deposit	IV. Short term finance repayable on demand, with a maturity period of one day to fifteen days.

Choose the correct answer from the options given below:

2022: 16 July Shift 2

Match the items of List I with the correct items of List II

List I	List II
A. Treasury Bill	I. Companies use it for bridge financing
B. Commercial Paper	II. Used for inter bank transactions
C. Call money	III. Issued by RBI on behalf of Central government
D. Commercial Bill	IV. It is a bill of exchange used to finance the working capital requirement of business

Choose the correct answer from the options given below :

2022: 15 July Shift 2

Name the market for financial securities which is also known as 'New Issue Market'

From the following identify the short term, negotiable, self liquidating instrument used to finance the working capital requirements of business firms.

Solution

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