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
limited
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B
unlimited
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C
equal
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D
higher
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Solution
The correct option is B limited Commercial paper is an unsecured promissory note given by a firm to raise finances for a short period of time.
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.