economics medium True/False

Commercial Papers (CPs) are unsecured, short-term debt instruments issued primarily by the Government of India.

  1. True
  2. False

Answer: False

Commercial Papers are issued by large, highly-rated corporate entities, primary dealers, and financial institutions to meet their short-term working capital needs. The government issues Treasury Bills (T-bills), not CPs, for its short-term borrowing requirements.

Topic Financial Markets - Money Market
Exam Relevance Banking, UPSC, SSC
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