1.

Explain the following term/concept.Commercial Bills

Answer»

Trade Bills/Commercial Bills:

  • Bill of Exchange also called Trade bills are negotiable instruments or bills drawn by a seller on the buyer for the value of goods sold under credit sales.
  • These have a short-term maturity period, generally of 90 days, and can be easily transferred.
  • If the seller wants immediate cash, he can discount the trade bills with Commercial banks.


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