Question : Which money market instrument is highlighted in the given statement?
Statement: These are unsecure promissory notes which are issued by well reputed companies to meet the demand of short term seasonal and working capital needs.
Option 1: Treasury bill
Option 2: Commercial paper
Option 3: Call money
Option 4: All of the above
Correct Answer: Commercial paper
Solution : Commercial papers are those on zincured from Mussoorie notes which are you should by well reputed companies to meet the demand of short term season and working capital needs. The company shall have to be a heavy floatation costs. The money spend in meeting the floatation course can be met by issuing commercial paper.
Hence, option B is correct.