Question

Tenure of a commercial paper shall be between

• A. 14 days to 6 months
• B. 1 month to 2 years
• C. 30 days to 18 months
• D. 7 days to 1 year

Answer 1

Answer:

D. 7 days to 1 year

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 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