Why is commercial paper unsecured?

Commercial paper is a short-term, unsecured debt instrument with a duration of 1 to 270 days. It is unsecured because it is not usually backed by any form of collateral. 

Further Readings – 

  1. Types of Cheque in Indian Banking System
  2. Chequebook Diplomacy
  3. Financial Market
Related Links
Types of Money Syllabus and Strategy for UPSC Economy
List of Committees & Their Purposes UPSC Mains General Studies Paper-3 Strategy, Syllabus & Structure
National Payments Corporation of India (NPCI)  UPSC Mains Economy Questions

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *

*

*