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Max co is a large multinational company which expects to have a $10m cash deficit in one month’s time. The deficit is expected to last no more than 2 months.
Max wishes to resolve its short term liquidity problem by issuing appropriate instrument on the money market.
Which the following instrument should Max co issue
a) Treasury bill
b) Commercial paperSir correct answer is commercial paper. Please can you explain why treasury bill cannot be the correct answer?
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