Expected Questions on Commercial Paper

Hello and welcome to exampundit. Today we are sharing most important Expected Questions on Commercial Paper for Banking Awareness Section in upcoming Bank Exams. Commercial Paper is one of the most important money market instruments which is why we have compiled a list of Expected Questions on Commercial Paper for you guys.

Expected Questions on Commercial Paper

1. In which year, commercial paper was introduced in India? – 1990
2. Who among the following can issue Commercial Paper in India? – Corporates, primary dealers (PDs) and the All-India Financial Institutions (FIs)
3. A corporate would be eligible to issue Commercial Paper only if tangible net worth of the company, as per the latest audited balance sheet, is not less than ____. – ₹4 crore
4. What is Commercial Paper (CP)? – Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note.
5. As per rating symbol and definition prescribed by Securities and Exchange Board of India (SEBI), to issue a Commercial Paper, minimum credit rating shall be – A-3
6. Along with A-3 minimum ratings, what is the minimum Ticket Size for Commercial Paper? – ₹6 lakhs
7. What is the minimum maturity period of Commercial Paper? – 7 Days
8. What is the maximum maturity period of Commercial Paper? – 1 year
9. The minimum face value of Commercial Paper is in the denomination of _____. – ₹5 lakhs
10. The minimum face value of Commercial Paper is in the multiples of _____. – ₹1 lakh
11. How long can the Commercial Paper issue remain open? – 2 weeks
12. In context of Commercial Paper, what does IPA stands for? – Issuing and Paying Agent
13. Who can act as Issuing and Paying Agent (IPA) for issuance of Commercial Paper? – Only Scheduled Bank
14. What is FIMMDA? – Fixed Income Money Market and Derivatives Association of India
15. RBI in April, 2018 appointed which organization for valuation of portfolios of government securities, which earlier used to be done by FIMMDA? – Financial Benchmark India Pvt Ltd (FBIL)

 

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