Commercial Bills Market” is a part of:

Correct option is A

The Commercial Bills Market is a segment of the Organised Money Market. It deals with short-term, self-liquidating negotiable instruments known as commercial bills or bills of exchange, used mainly to finance trade (both domestic and foreign).
Since these instruments mature within a short period (generally 90 days), they form an integral part of the money market, which deals with short-term funds. Because the market is regulated and operates through established financial institutions like commercial banks, RBI, and acceptance houses, it is considered a part of the organised segment of the money market.
Thus, the correct answer is (a) Organised Money Market.
Information Booster
1. The money market deals with short-term financial instruments (maturity < 1 year).
2. Commercial bills provide trade credit and help ensure liquidity in the system.
3. They are highly liquid because they can be discounted with banks.
4. RBI supports the development of this market through bill rediscounting facilities.
5. Other components of organised money market include call money market, treasury bills, commercial paper, certificates of deposit, etc.
Additional Information
· (b) Stock Market: Deals with buying and selling of shares—long-term instruments—not short-term bills.
· (c) Capital Market: Handles long-term funds such as equity and bonds; commercial bills do not belong here.
· (d) Unorganised Money Market: Includes indigenous bankers and money lenders; commercial bills do not operate in this informal setup.