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

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