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1 FINANCE MCQS

Which financial instrument is used to raise funds for working capital?

  • Commercial paper
  • Commercial notes
  • Notes payable
  • Notes receivable
Correct Answer: A. Commercial paper

Detailed Explanation

Commercial paper is a short-term unsecured debt instrument issued by companies to meet their immediate working capital needs. It is widely used because it allows businesses to quickly raise funds without taking long-term loans or providing collateral.

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