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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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