📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    Which of the following instruments is traded in the

    'Corporate Debt Market'?
    A Commercial Paper Correct Answer Incorrect Answer
    B Equity Shares Correct Answer Incorrect Answer
    C Treasury Bills Correct Answer Incorrect Answer
    D Sovereign Gold Bonds Correct Answer Incorrect Answer
    E Currency Futures Correct Answer Incorrect Answer

    Solution

    • The Corporate Debt Market is where companies raise capital by issuing  debt securities .
      • Commercial Paper (CP)  is a  short-term, unsecured promissory note  issued by corporations to meet their immediate funding needs (maturity < 1 year). It is a classic money market instrument that is part of the corporate debt universe.
      • Equity Shares  represent ownership, not debt.
      • Treasury Bills  and  Sovereign Gold Bonds  are debt instruments, but they are issued by the  Government of India  (sovereign), not corporations. They trade in the government securities (G-Sec) market.

    Practice Next
    ask-question