Question : Commercial papers are short-term debt instruments issued by:
Option 1: Banks
Option 2: Central banks
Option 3: Corporations
Option 4: Mutual funds
Answer (1)
22nd Jan, 2024
Correct Answer: Corporations
Solution : The correct answer is (c) Corporations.
Commercial papers are short-term debt instruments issued by corporations to meet their short-term funding needs. They are unsecured promissory notes with a fixed maturity, typically ranging from a few days to a year. Commercial papers are typically issued by large, creditworthy corporations to raise funds from investors in the money market.
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