Which of the following financial instruments is classified as a negotiable, short-term unsecured promissory note issued by highly rated corporate houses in the Indian money market?

💡 Solution & Explanation

Commercial Paper is a short-term, unsecured promissory note issued by highly rated corporate houses and financial institutions to bridge immediate working capital deficits in the money market. Treasury bills represent short-term debt instruments issued exclusively by the central government rather than corporate entities. Money market instruments are frequently tested in banking and economics papers due to their role in liquidity management.