Promissory notes issued by company for short term fund raising and are unsecured are classified as

A. unsecured notes

B. debt paper

C. term paper

D. commercial paper

Answer: Option D

Solution(By Examveda Team)

Promissory notes issued by company for short term fund raising and are unsecured are classified as commercial paper. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities.