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    Identify the money market instrument that can be used for bridge financing.
    Question

    Identify the money market instrument that can be used for bridge financing.

    A.

    Call money

    B.

    Commercial paper

    C.

    Certificate of Deposit

    D.

    Commercial Bill

    Correct option is B

    Funds raised through this Commercial Paper are used to meet floatation costs. This is known as bridge financing.

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