Vidyalelo
Management · Q431

International Finance and Treasury

Graduate and Post Graduate · Management · question 431

Q431

Short term promissory notes and are unsecured, not collateralized against securities is classified as

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

Answer: Option C

Solution

Answer: Option C
Solution:
Short term promissory notes and are unsecured, not collateralized against securities is classified 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.