Vidyalelo
Management · Q434

International Finance and Treasury

Graduate and Post Graduate · Management · question 434

Q434

Financial instrument which is used to raise funds for working capital is considered as

A.
commercial paper
Answer
B.
commercial notes
C.
notes payable
D.
notes receivable

Answer: Option A

Solution

Answer: Option A
Solution:
Financial instrument which is used to raise funds for working capital is considered as commercial paper. 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.