It is used as an alternative to bank borrowing for large and creditworthy companies.

(a) Call money

(b) Commercial papers

(c) Commercial bill

(d) None of the above

Answer (b) Commercial papers

Explanation: Commercial Paper is a money market instrument that is unsecured. The issue of commercial paper is in the form of a promissory note. CP was presented in India in 1990 with the end goal of empowering exceptionally rated corporate borrowers to expand their sources of short-term borrowings and to give an additional instrument to financial back arts and investors.

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