Why Commercial Papers Are Not Easily Convertible to Cash?

1 FINANCE MCQS

Commercial papers cannot be easily converted into cash due to lack of __________?

Organized secondary markets
Organized primary markets
Organized interest markets
Organized money markets

Correct Answer: A. Organized secondary markets

Detailed Explanation

Commercial papers are short-term unsecured promissory notes issued by corporations to raise funds. They are not highly liquid because there is no well-developed organized secondary market for trading them. This lack of a strong secondary market limits their convertibility into cash before maturity.

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Commercial papers cannot be easily converted into cash due to lack of __________?

Commercial papers cannot be easily converted into cash due to lack of __________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…