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      Question

      Commercial Papers (CP) is a money market instrument used

      to raise funds for a maximum of ____?
      A 90 days Correct Answer Incorrect Answer
      B 180 days Correct Answer Incorrect Answer
      C 210 days Correct Answer Incorrect Answer
      D 364 days Correct Answer Incorrect Answer
      E 500 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 (364 days) from the date of issue. Commercial Paper are issued by corporates to raise short term funds.

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