Which of the following is an unsecured money market instrument?

1.	Which of the following is an unsecured money market instrument?
Answer» Treasurty Bills Certificates of Deposit Commerical Paper Bankers' Acceptances Solution :Commercial paper refers to unsecured short-term PROMISSORY notes issued by financial and nonfinancial CORPORATIONS. It is typically issued by large. Creditworthy corporatoins with unused lines of BANK credit and therefore CARRIES low default risk. Unlike some other types of money market instruments, in which banks act as INTERMEDIARIES between buyers and sellers, commercial paper is issued directly by well-established companies, as well as by financial institutions.

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