Which of the following is correct about Commercial

Q: Answer-Which of the following is correct about Commercial Papers (CP)?

Commercial Paper CP is an unsecured money market instrument issued in the form of a promissory note. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. Commercial Paper are issued by corporates to raise short term funds.

Papers (CP)?

A CP is issued by municipalities to meet short term needs Correct Answer Incorrect Answer

B CP is issued by corporates for short term Correct Answer Incorrect Answer

C CP is issued by banks to manage liquidity Correct Answer Incorrect Answer

D CP is issued by Central Government for short term requirements Correct Answer Incorrect Answer

E All of the above Correct Answer Incorrect Answer

Solution

Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CP can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue. Commercial Paper are issued by corporates to raise short term funds.

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Relevant for Exams:

IIFCL Grade A

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