Which of the following financial instruments represents an unsecured money market instrument issued in the form of a promissory note?

💡 Solution & Explanation

Commercial Paper is categorized as an unsecured money market instrument issued in the form of a promissory note by highly rated corporate bodies, primary dealers, and financial institutions to meet short-term funding requirements. Unlike Treasury Bills, which are issued by the government, or Certificates of Deposit, which are issued by commercial banks and financial institutions, Commercial Paper relies entirely on the creditworthiness of the issuing corporate entity without any underlying collateral.