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    Question

    Corporates can raise short term funds through financial

    instruments like Commercial Papers (CP) in the money market. What is the minimum time for which a CP can be issued?┬а
    A 1 day Correct Answer Incorrect Answer
    B 5 days Correct Answer Incorrect Answer
    C 7 days Correct Answer Incorrect Answer
    D 10 days Correct Answer Incorrect Answer
    E 15 days 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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