It is used as an alternative to bank borrowing for large and creditworthy companies,Answer choicesSelect only one optionREVISITCommercial papersTreasury billDebenturesCall money
Question
It is used as an alternative to bank borrowing for large and creditworthy companies,Answer choicesSelect only one optionREVISITCommercial papersTreasury billDebenturesCall money
Solution
The correct answer is Commercial papers. These are short-term unsecured promissory notes issued by companies to finance their short-term credit needs. Large and creditworthy companies often use commercial papers as an alternative to bank borrowing due to their lower financing costs and greater flexibility.
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