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Commercial Paper is a ---

ABond

BSecurity

CNegotiable Instrument

DLoan Document

Answer:

C. Negotiable Instrument

Read Explanation:

COMMERCIAL PAPER:

  • Commercial Paper is an unsecured Short term debt instrument, which are issued by Corporates and All Indian Financial institution.

  • Tenure of a commercial paper shall be between - 7 Days to 1 year 

  • Commercial Paper was introduced in India by RBI - Jan 1990 

  • Commercial paper is issued for Working Capital requirements 

  • Commercial paper is an - unsecured promissory note 

  • Commercial paper was first used in CPs are available for a minimum amount of Rs 500000 or multiples of it.

  • It is a Negotiable Instrument 


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