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Question
Multiple Choice Question:
The maturity period of a commercial paper usually ranges from
Options
20 to 40 days
60 to 90 days
120 to 365 days
90 to 364 days
MCQ
Solution
Commercial paper is a credit instrument used by creditworthy firms to obtain short-term finance for their business. The maturity period of the instrument ranges from 90 to 364 days. The issue of commercial paper in India is regulated by the Reserve Bank of India.
Hence, the correct answer is option 90 to 364 days.
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Meaning and Nature of Business Finance
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