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Question : Case Study 25:

MNO Enterprises is a leading company in the consumer goods sector planning to expand its operations globally.

Question : 

To raise short-term funds for marketing its products in international markets, which money market instrument might MNO Enterprises use?

Option 1: Corporate bond
 

Option 2: Call money
 

Option 3: Treasury bill

 

Option 4: Commercial paper


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Commercial paper


Solution : The correct answer is (d) Commercial paper

Commercial paper is a short-term 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 international markets. Commercial paper provides a cost-effective and efficient way to raise capital for short-term activities, making it suitable for funding marketing efforts in this context.

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