Explain the following Money Market Instruments:
Commercial paper
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Solution
Commercial papers: Commercial papers are short-term unsecured money market instruments. Introduced in India in 1990, they are promissory notes which are negotiable and transferable. They have a maturity period ranging from a minimum of 15 days to a maximum of one year. They are primarily used by large and creditworthy companies for bridge financing.
Concept: Types of Financial Markets
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