GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Loan
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Commercial papers
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Certificate of deposits
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None of the above
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Detailed explanation-1: -1. ‘Commercial Paper’ is a short-term unsecured promissory note. 2. ‘Certificate of Deposit’ is a long-term instrument issued by the Reserve Bank of India to a corporation.
Detailed explanation-2: -Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
Detailed explanation-3: -Commercial paper is a short-term, unsecured debt instrument with a duration of 1 to 270 days. It is unsecured because it is not usually backed by any form of collateral.
Detailed explanation-4: -Commercial paper is an unsecured, short period debt tool issued by a company, usually for the finance and inventories and temporary liabilities. The maturities in this paper do not last longer than 270 days.