Question : Case Study 17:

JKL Inc. is a startup in the education sector aiming to raise funds for developing online learning platforms.

Question : 

To raise short-term funds for marketing its online learning platforms, which money market instrument might JKL Inc. use?

Option 1: Corporate bond
 

Option 2: Call money
 

Option 3: Commercial paper

 

Option 4: Treasury bill


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Commercial paper


Solution : The correct answer is (c) Commercial paper.

Commercial paper is a short-term, unsecured debt instrument issued by corporations, typically with maturities ranging from a few days to a year. It is a common choice for businesses seeking short-term funds to finance various operational needs, including marketing initiatives. In summary, commercial paper offers JKL Inc. a swift and cost-effective means of raising short-term funds for marketing its online learning platforms, aligning well with their needs for timely financial support in this context.

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