What is a commercial paper? - Business Studies

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Short Note

What is commercial paper?

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Commercial paper is a credit instrument used by creditworthy firms to obtain short-term finance for their business. These are unsecured promissory notes, the maturity of which ranges from 90 to 364 days. They are generally issued to business firms, banks, insurance companies and pension funds, and their issue is regulated by the Reserve Bank of India.

Concept: Meaning and Nature of Business Finance
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NCERT Class 11 Business Studies
Chapter 8 Sources of Business Finance
Long Answers | Q 6.1 | Page 205

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