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Question

What is the maturity period of “ Commercial Papers”?

A 7 Days – 270 Days Correct Answer Incorrect Answer
B 5 Days – 250 Days Correct Answer Incorrect Answer
C 15 Days – 300 Days Correct Answer Incorrect Answer
D 8 days – 280 Days Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

When large firms need day to day short term money for business needs then they raise capital through promissory notes in the market is known as Commercial Papers. They have fix maturity date ranging from 7 Days – 270 Days. They offer higher returns compared to that from treasury bills .

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