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    Question

    An unsecured short-term promissory note, negotiable and

    transferrable by endorsement and generally issued at discount is known as-
    A Demand Draft Correct Answer Incorrect Answer
    B Certificate of Deposit Correct Answer Incorrect Answer
    C Commercial Bill Correct Answer Incorrect Answer
    D Commercial Paper Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.

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