Which money market instrument represents a short-term, unsecured promissory note issued by large, creditworthy corporations?
ABanker's Acceptance
BTreasury Bill
CCommercial Paper
DCertificate of Deposit
Explanation
* Commercial Paper is an unsecured short-term debt instrument issued by corporations to finance short-term obligations.
* Maturity ranges from 1 to 270 days and is typically issued at a discount.
* Available primarily to corporations with high credit ratings.
Exam Relevance
- Topic: Financial Markets
- Subtopic: Money Market Instruments

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