GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks to Banks
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Banks to Companies
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A Company to a Bank
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Company to its suppliers
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Detailed explanation-1: -It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.
Detailed explanation-2: -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. It reflects prevailing market interest rates.
Detailed explanation-3: -Commercial paper is an unsecured, short term debt instrument issued by a corporation, typically for the financing of account receivable, inventories ad meeting short term liabilities. They are generally issued at a price less than face value. Was this answer helpful?
Detailed explanation-4: -Commercial paper is a money-market security issued by large corporations to obtain funds to meet short-term debt obligations (for example, payroll) and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.