Question

--- is an unsecured short term debt instrument, issued by Corporates and All Indian Financial institutions.

• A. Debenture
• B. Treasury Bill
• C. Commercial Paper
• D. Certificate of Deposit

Answer 1

Answer:

C. Commercial Paper

COMMERCIAL PAPER:

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

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

• Commercial Paper introduced in India by RBI - Jan 1990 

• Commercial paper issued for Working Capital requirements 

• Commercial paper is an - unsecured promissory note 

• Commercial paper first used in CPs are available for a minimum amount of Rs 500000 in multiple of It is a Negotiable Instrument