Question : It is an unsecured document with a 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)
9th Jan, 2024
Correct Answer: Commercial paper
Solution : Commercial paper is unsecured instrument it is freely transferable by endorsement and delivery. It usually has a maturity period of 15 days to one year.
Hence, option B is correct.
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