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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 corporations to meet their working capital requirements such as payroll, inventory, and other short-term liabilities. It usually has a maturity of up to 270 days and is a common money market instrument.

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