Question

______ is an unsecured short term money market instrument. 

Options

• Call Money

• Treasury Bills

• Commercial Paper

• Certificate of Deposit

Answer 1

Commercial Paper

Explanation - 

Commercial paper is a short-term money market instrument that is unsecured. It's a negotiable and transferable promissory note with a maturity duration of 15 days to one year. They first appeared in India in 1990. Large, creditworthy corporations typically issue CPs to raise short-term capital. Commercial Papers are seen by large firms as a viable alternative to bank and capital market borrowing.