Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is a short-term debt instrument issued by companies in the Corporate Debt Market?
Which of the following is a short-term debt instrument issued by companies in the Corporate Debt Market?
easy Q11 of 15
Step-by-Step Solution
Step 1: Identify short-term corporate debt instruments
Commercial Paper is a short-term unsecured promissory note issued by companies to raise funds.Step 2: Differentiate other options
Non-Convertible Debentures are long-term debt instruments; Equity Shares represent ownership, not debt; Treasury Bills are government securities.Final Answer:
Commercial Paper → Option DQuick Check:
Short-term corporate debt instrument = Commercial Paper ✅
Quick Trick: Remember: Commercial Paper = short-term corporate debt
Common Mistakes:
- Confusing Treasury Bills (government) with Commercial Paper (corporate)
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