Commercial Bills and Commercial Paper

Q.

A commercial bill is used to ____________

1. Meet the short term debt

2. Pay the interest

3. Finance the working capital requirements

4. Meet the long term debt

Q.

'An instrument is transferable by endorsement and delivery. It is sold at a discount and redeemed at par'. Identify the instrument.

1. Commercial Bill

2. Commercial Paper

3. T-Bill

4. Call Money

Q.

When the trade bill is accepted by commercial banks, it is known as a commercial bill. State true or false.

1. True

2. False

Q. ' Rakesh Steel Lts.' is a large and creditworthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long term finance. It decides to raise funds by issuing equity shares. the issue of equity shares involves huge flotation cost. To meet the expenses of flotation cost the company decides to tap the money market.

Name the money market instrument the company can use for the above purpose.

1. Call Money
2. Commercial Paper
3. Treasury Bill
4. Comemrcial Bill

Q.

When a trade bill is accepted by a commercial bank, it is known as a _____

1. None of these

2. Commercial Bill

3. Call money

4. Certificate of deposit

Q. Commercial paper matures in .

1. 1 day - 7 days
2. upto 15 days
3. 15 days - 1 year
4. 10 days

Q. Ais a form of bills of exchange used to finance the working capital of firms.

1. Commercial paper
2. Commercial Bill
3. Call money
4. T-Bill

Q. cost is the cost incurred by a company to offer securities to the public.

1. Fixed
2. Recurring
3. Variable
4. Floatation

Q. For controlling the speed of an induction motor the frequency of supply is increased by 10%. For magnetizing current to remain the same, the supply voltage must

1. be reduced by 10%
2. be reduced or increased by 20%
3. remain constant
4. be increased by 10%

Q. A three phase source variable frequency is required for an experiment. The frequency changer system is as shown in figure below.

The induction machine is a three-phase 460 volts, 60 Hz supply. The variable frequency output is obtained from the rotor terminals. The frequency is to be controlled over the range 15 -120 Hz. The speeds in rpm of the-system to give 120 Hz is (Given number of poles = 6)

1. 900 and 1500 rpm
2. -1200 and 3600 rpm
3. 3600 and 1200 rpm
4. 500 and - 900 rpm