Which of the following statements is correct regarding the commercial paper? I. It is unsecured money market instrument issued in the form of a promissory note. II. It was introduced in India in 1990. III. They are issued by the Reserve Bank of India.
- A.Only I
- B.I, II and III
- C.I and II
- D.Only III
Show answer
Statement I is right: commercial paper is an unsecured money market instrument issued in the form of a promissory note, so it is backed only by the credit standing of the issuer and not by any security.
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