Question : It is a short term and unsecured negotiable promissory note with the fixed maturity period. Which of the following money market instrument is highlighted in the given statement?
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: Commercial bill
Answer (1)
18th Jan, 2024
Correct Answer: Commercial paper
Solution : Commercial paper short term and unsecured negotiable promissory note with the fixed maturity period which is issued by large and credit worthy companies to raise short term funds at lower rates of interest than the market rates.
Hence, option B is correct.
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