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An investor wanted to invest 20000 for period of 9 to10 days . Then he approached the reserve bank of india for this purpose. He wanted to know that it was not possible. Identify the reason why the investor could not invest in tresory bill?
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An investor wanted to invest 20000 for period of 9 to10 days . Then he...
The investor could not invest in treasury bill because the RBI issues the treasury bills on the behalf of the government in multiples of 25000 only
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Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability____________ means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise.

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An investor wanted to invest 20000 for period of 9 to10 days . Then he approached the reserve bank of india for this purpose. He wanted to know that it was not possible. Identify the reason why the investor could not invest in tresory bill?
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An investor wanted to invest 20000 for period of 9 to10 days . Then he approached the reserve bank of india for this purpose. He wanted to know that it was not possible. Identify the reason why the investor could not invest in tresory bill? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An investor wanted to invest 20000 for period of 9 to10 days . Then he approached the reserve bank of india for this purpose. He wanted to know that it was not possible. Identify the reason why the investor could not invest in tresory bill? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An investor wanted to invest 20000 for period of 9 to10 days . Then he approached the reserve bank of india for this purpose. He wanted to know that it was not possible. Identify the reason why the investor could not invest in tresory bill?.
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