Question
Commercial Bills and Treasury Bills
| Points | Commercial Bills | Treasury Bills |
| 1. Meaning | Commercial Bills are the money market instruments that are created to fulfill the credit needs of Trade and Industry. | Treasury bills are the money market instruments that are created to fulfill the credit needs of the government. |
| 2. Nature of instrument | They are in the form of a bill of Exchange. | They are in the form of promissory notes. |
| 3. Maturity Period | The maturity period is 3 months/90 days. | The maturity period of treasury bills is 91 days, 182 days, 364 days. |
| 4. Borrower | Blue Chip companies or big business organizations are the borrowers. | Government is the borrower. |
| 5. Development of market | The commercial bill market has not much developed in the money market. | Treasury bills have developed in the money market due to government support. |
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