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प्रश्न
Explain in brief Discounting of bills of exchange.
उत्तर
Discounting of bills of exchange implies procuring cash from a bank in exchange for credit instruments.
The banks charge some commission for this service by paying a price lower than the face value of the credit instrument. The holder of the instruments remains liable to the bank if the instrument is dishonored on maturity.
APPEARS IN
संबंधित प्रश्न
______ shares do not carry voting rights.
Write a short note on:
Cash Credit
What is Cash Credit?
Name the source of finance wherein receivables on account of the sale of goods or services are sold at a discount.
Differentiate between owned funds and borrowed funds.
State any three sources of borrowed funds.
Name three sources of owned funds for business.
Which source is the best source of raising borrowed funds for a business? and why?
Long-term finance is required for meeting day-to-day requirements.
