BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Long term debt issued by private corporations.
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Short-term and unsecured promissory notes issued by corporations with-very high credit standings.
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Savings instrument, in which funds must remain on deposit for a specified period, and premature withdrawals incur interest penalties.
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1 and 3
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Detailed explanation-1: -Commercial paper is unsecured debt with short terms (up to 270 days) issued by companies with high credit ratings. It offers a less expensive way to raise money to pay short-term expenses compared to getting a business loan.
Detailed explanation-2: -Meaning of Commercial Paper In India, commercial paper is a short-term unsecured promissory note issued by the Primary Dealers (PDs) and the All-India Financial Institutions (FIs) for a short period of 90 days to 364 days.
Detailed explanation-3: -Commercial paper consists of short-term, unsecured promissory notes issued by corporations for specific amounts and with specific maturity dates. Many companies issue commercial paper to raise cash needed for current transactions, with many finding it to be a less costly alternative to bank loans.
Detailed explanation-4: -Commercial paper refers to a short-term, unsecured debt obligation that is issued by financial institutions and large corporations as an alternative to costlier methods of funding. It is a money market instrument that generally comes with a maturity of up to 270 days.
Detailed explanation-5: -Commercial paper is short-term, unsecured debt issued mainly by financial institutions and large corporations. It is issued at a discount, usually in denominations of at least $100, 000. Institutional investors such as mutual funds and insurance companies are the main buyers of commercial paper.