Examkin

Soru

Zorluk: ZorThe Money Market: Operations and Financial Instruments

Commercial paper is a short-term, unsecured debt instrument issued by creditworthy corporations specifically to finance the acquisition of long-term fixed capital assets.

Cevap: Cevap

Cevap

False
The statement is false because commercial paper is a short-term money market instrument designed exclusively to raise working capital for short-term operational expenses. Acquiring long-term fixed capital assets is a function of the capital market using instruments such as shares, stocks, or debentures.

Adım Adım Çözüm

1
Identify the market classification of commercial paper.
Commercial paper is a short-term unsecured promissory note issued in the money market with a maturity period typically ranging from a few days to 270 days.
Money market operations deal strictly with short-term funds and debt instruments maturing within one year.
2
Analyze the purpose of the funds stated in the proposition.
Financing long-term fixed capital assets requires long-term capital market instruments such as stocks, shares, or corporate debentures.
Using short-term money market instruments for long-term fixed asset acquisition creates a severe maturity mismatch and misinterprets the fundamental role of the money market.

Anahtar Kavram

Functional differentiation between money market and capital market financial instruments
Bu soruyu puanla

Konular

The Money Market: Operations and Financial Instruments

Bu konudan daha fazla soru