is a short term unsecured promissory note issued by reputed business organisations at a price lower...........

Banking and Fianncial Awareness (IBPSCL) MCQ practise

______ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.

This questions was previously asked in

IBPS Clerk Main (8th Oct 2022)

Treasury bill

Commercial paper

Certificate of deposit

Promissory note

None of the above

- Correct Answer: Option 2 - Commercial paper

- Commercial paper is issued by reputable businesses to meet short-term liabilities. It's unsecured, sold at a discount, and redeemed at face value.

- Option 1: Treasury bill is a government-issued short-term debt instrument, also sold at a discount but backed by the government.

- Option 3: Certificate of deposit is a time deposit offered by banks, with a fixed interest rate and maturity date.

- Option 4: Promissory note is a written promise to pay a specified amount, unsecured, and not typically issued at a discount.

- None of the above: Not applicable as the correct answer is provided.

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