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

    Question

    Consider the following statements about Commercial Paper

    (CP): 1. It is a short-term, unsecured promissory note. 2. Only companies with a minimum net worth of ₹4 Crore are eligible to issue CP. 3. It is issued at a discount to the face value. Which of the statements above is/are correct? 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1, 2, and 3 Correct Answer Incorrect Answer
    D 1 and 3 only Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    All statements are correct. CPs are high-quality, short-term money market instruments used by corporates to meet working capital needs.

    Practice Next
    More General Topics in Finance Questions

    Relevant for Exams:

    ask-question