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Management · Q399

International Finance and Treasury

Graduate and Post Graduate · Management · question 399

Q399

Investors held commercial papers generally from

A.
issuance to maturity
Answer
B.
within 1 to 2 days
C.
within 3 to 4 days
D.
within 4 to 5 days

Answer: Option A

Solution

Answer: Option A
Solution:
Investors held commercial papers generally from issuance to maturity. 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. Maturities on commercial paper rarely range longer than 270 days.