Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MARKET3 Marks
Question
What is the most significant difference between $T-$Bills and commercial papers? Also, state alternative names for both.
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Answer
Treasury bills are issued by the central government to raise capital whereas commercial papers are issued by large private corporations having very high and strong reputation as well as financial credit in the market.
Another name for $T-$Bills is ‘zero coupon bond’. Commercial paper is also called finance paper, industrial paper and corporate paper.
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