Fast speed Ltd. is an automobile company. It now wants to export the spare parts to other countries and decides to invest in hi-tech machines. Since the investment is large, it requires long-term funds.it decides to raise by issuing equity shares which involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market. Name the money market instrument the company can use for the above purpose.

Treasury bills Certificate of deposits Commercial papers Repurchase agreements

Commercial papers

Commercial papers can be used as it is issued by large and credit worthy companies. This instrument is in the form of an unsecured promissory note and it is freely transferable by endorsement. It is sold at discount and redeemed at par.