Question : It is an negotiable promissory note with the fixed maturity period. Which 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)
14th Jan, 2024
Correct Answer: Commercial paper
Solution : Commercial paper short term unsecured negotiable promissory note with the fixed maturity period. It is an negotiable instrument as it is free transferable by endorsement and delivery.
Hence, option B is correct.
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