BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
a short term obligation of the government issued to commercial investors
|
|
|
short term unsecured promissory notes issued by corporations
|
|
|
an insignificant source of funds to large corporations
|
|
|
the debt obligations of chartered banks
|
Detailed explanation-1: -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-2: -Commercial paper (CP) is a short-term, unsecured promissory note issued by corporations typically used as a source of working capital, receivables financing, and other short-term financing needs. CP has maturities ranging anywhere from 1 to 270 days.
Detailed explanation-3: -Commercial paper is a short-term, unsecured debt instrument with a duration of 1-270 days. Financial institutions and large corporations are the main issuers of commercial paper because they have high credit ratings.
Detailed explanation-4: -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-5: -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.