Commercial papers provide _______ funds as compared to other sources.

less

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medium

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equal

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Solution

The correct option is B more
The size of money that can be raised through commercial paper is limited to the excess liquidity available with the suppliers of funds at a particular time. Commercial paper provides more funds as compared to other sources.

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Commercial banks occupy a vital position as they provide funds for different_____________ as well as different time periods.

From which source, a firm can raise long term funds when a loan is not provided by a commercial bank? Discuss its merits.

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