Is commercial paper an example of a capital market security?

Answer 1

Yes and no to this question as it depends on the government standard of issuing paper money..

Yes, it is a sheer representation of gold or other precious items for security. The guidelines of the nation is stable and has in place insurances that secure those gold standards or other stable standards determines the worth per documentation. There must also be assurances against counterfeit. Two most stable standards are the U.S. dollar & British Pound... Each is backed by real gold reserves.

No, as governments can become demised it's standard is eliminated if the government no longer exists and there is no stable backing in its valuation backing the paper money then it only exists as a promissory note. Some nations have their monetary money backed either buy U.S. dollars or British pound ... especially lesser nations.

Hence why if the U.S. Dollar and British Pound were to fail it's impact global especially lesser nations roughly 2/3's of the global economy...... to some regards it is the secondary source back up to the Euro....if collapse in emergency calls towards secondary monetary backing can be made but under restrictive terms in fact it's the major depreciation reason why housing has still remained relatively devalued due to investments into the Euro markets.... several Asian markets have an independent base China and Japan has a percentage of it's yen in private stable wealth holding that have been increased since 1990. Most nations average support their own printed notes/money on about 1/4 in gold or other stable reserves securing value. All of which can be depreciated in worth do to national debt.

Answer 2

No, commercial paper is not an example of a capital market security. It is a type of short-term promissory note issued by corporations to raise funds for their short-term financing needs. Capital market securities include stocks, bonds, and other long-term investments.