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Who mainly uses Commercial Paper for bridge financing?

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Question

Who mainly uses Commercial Paper for bridge financing?

Options

  • Sellers financing credit sales

  • Large, creditworthy companies

  • RBI on behalf of the central government

  • Commercial banks borrowing from each other

MCQ
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Solution

Commercial Paper is used mainly by large, creditworthy companies for bridge financing. It provides a short-term financing option for these companies.

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