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The instruments of credit includes?


Question

The instruments of credit includes?

Options

A)
billboards and postal stamps
B)
payment vouchers and statement of account
C)
bills of exchange and promissory notes
D)
bills of exchange and salary salary vouchers

The correct answer is C.

Explanation:

The question is asking about the instruments of credit. Instruments of credit are documents or financial tools that are used to facilitate borrowing or lending money. They help in establishing trust and providing evidence of a financial transaction.

The options given are:

- Option A: billboards and postal stamps

- Option B: payment vouchers and statement of account

- Option C: bills of exchange and promissory notes (Correct)

- Option D: bills of exchange and salary vouchers

To determine the correct answer, we need to understand what bills of exchange and promissory notes are.

A bill of exchange is a written order from one person (the drawer) to another (the drawee) to pay a specific amount of money to a third person (the payee) at a specific future date. It is a legally binding document that can be used as a form of credit.

A promissory note, on the other hand, is a written promise by one person (the maker) to pay a specific amount of money to another person (the payee) at a specific future date. It is also a legally binding document that can be used as a form of credit.

Based on this information, we can see that Option C, which includes bills of exchange and promissory notes, is the correct answer. These instruments of credit are commonly used in business transactions to facilitate borrowing and lending.

Therefore, the correct answer to the question is Option C: bills of exchange and promissory notes.

Note: The other options, such as billboards, postal stamps, payment vouchers, and salary vouchers, are not instruments of credit. They are unrelated to the concept of borrowing and lending money.

In conclusion, when it comes to instruments of credit, bills of exchange and promissory notes are important tools that enable financial transactions and borrowing.


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