2. What is commercial instruments ?

Commercial instruments refer to financial documents, such as promissory notes, bills of exchange, checks, and certificates of deposit, that are used in commercial transactions to facilitate payments and assure the performance of contractual obligations. These instruments are typically negotiable, meaning they can be transferred or assigned to another party as a form of payment or security. Commercial instruments play a key role in the functioning of the financial system and in facilitating trade and commerce between businesses.