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Business Studies

Commercial Paper

The size of m...

Question

The size of money that can be raised through commercial paper is to the excess liquidity available with the suppliers of funds at a particular time.

A

unlimited

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B

limited

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C

high

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Solution

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

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Q. The size of money that can be raised through commercial paper is ________ to the excess liquidity available with the suppliers of funds at a particular time.

Q. Commercial paper is an unsecured _________ note issued by the firm to raise funds for a short-term period.

Q. The RBI, commercial banks and are suppliers of money in India.

Q. 46. Consider the following statements
1. The money under demand deposit is liquid and can be encashed at any time.
2. Recurring account is an example of demand deposit.
3. Funds held under Time deposit are available to the investor at predetermined time.
4. In India, the bank deposits are covered under the insurance scheme.
Which of the above statement(s) is/are correct?

Internal sources of capital are those that are

(a) generated through outsiders such as suppliers

(b) generated through loans from commercial papers

(c) generated through issue of shares

(d) generated within the business

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