Question:
Which instrument of Money Market is known as "Bridge Financing"?
Which instrument of Money Market is known as "Bridge Financing"?
Updated On: Mar 27, 2025
- Commercial Paper
- Call Money
- Certificate of Deposit
- Commercial Bill
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The Correct Option is D
Solution and Explanation
A Commercial Bill is often used as a form of bridge financing in the money market. It is a short-term instrument used by companies to finance their working capital needs by borrowing against their receivables. These bills help businesses manage liquidity by providing quick access to funds, typically for a short duration, before the receivables are collected.
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