GENERAL KNOWLEDGE

Detailed explanation-1: -What Is Commercial Paper? Commercial paper is an unsecured, short-term debt instrument issued by corporations. It’s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories. Commercial paper is usually issued at a discount from face value.

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: -Unsecured Short-Term Loans An unsecured borrower does not have to pledge specific assets as security. The three main types of unsecured short-term loans are trade credit, bank loans, and commercial paper.

Detailed explanation-4: -Short-term Commercial Papers (STCPs) are securities issued by SEC-Registered Philippine corporations typically to fund short-term financial obligations such as payroll, purchase of inventory, among others. Tenors of STCPs vary can range from 30 days to 1 year.

Detailed explanation-5: -Commercial paper is basically unsecured, short-term debt from a large financially secure company. This statement is true because they are unsecured, short term debt with maturity mostly not exceeding 270 days which are issued by large corporations so as they can meet short term obligations.