Question

    Which among the following cannot issue Commercial Papers

    to raise funds from the market?
    A NABARD Correct Answer Incorrect Answer
    B SIDBI Correct Answer Incorrect Answer
    C EXIM Bank Correct Answer Incorrect Answer
    D Both B and C Correct Answer Incorrect Answer
    E All can raise funds Correct Answer Incorrect Answer

    Solution

    Commercial Papers are unsecured money market instruments issued in the form of the promissory notes. This was first issued in India in the year 1990. These instruments can be issued by corporates, primary dealers and all India Financial Institutions such as NHB, NABARD, SIDBI, ECGC, EXIM Bank etc. CP can be issued for a minimum period of 7 days and the maximum period of a year.

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