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Management · Q451

International Finance and Treasury

Graduate and Post Graduate · Management · question 451

Q451

Commercial papers cannot be converted in to cash with easy and quick transactions because of lack of

A.
organized secondary markets
Answer
B.
organized primary market
C.
organized interest markets
D.
organized money markets

Answer: Option A

Solution

Answer: Option A
Solution:
Commercial papers cannot be converted in to cash with easy and quick transactions because of lack of organized secondary markets. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.