Exam ICWIM Topic 1 Question 108 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 108
Topic #: 1
Unsecured negotiable bearer securities that are issued by companies with a full stock market listing are known as:

Suggested Answer: B Vote an answer

Commercial Paper (CP) is a short-term, unsecured debt instrument issued by large, creditworthy corporations to finance short-term liabilities.
* Why is Option B Correct?
* CP is negotiable (can be sold on secondary markets).
* It is unsecured (not backed by assets).
* Maturity ranges from 1 day to 270 days.
* Why Not Other Options?
* A (Certificates of Deposit) # Issued by banks, not corporations.
* C (Bills of Exchange) # Used for trade finance, not corporate funding.
* D (Treasury Bills) # Issued by governments, not companies.
# Reference: Bank of England (Commercial Paper Market), CISI Wealth & Investment Management.

by Colbert at Oct 09, 2025, 01:12 AM

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