Question

Commercial paper, bankers' acceptances, and repos generally settle on which of the following dates?

a. T+0
b. T+1
c. T+3
d. T+5

Answer 1

Commercial paper, bankers' acceptances, and repos generally settle on T+0, meaning the settlement occurs on the same day the transaction is made.

Step-by-step explanation:

Commercial paper, bankers' acceptances, and repos generally settle on T+0, which stands for transaction date plus zero days. This means that the settlement of these types of short-term financial instruments typically occurs on the same day that the transaction is made.

These instruments are used by companies and banks for short-term financing needs and have a quick settlement period to facilitate the rapid pace of these transactions. On T+0, assets and funds are exchanged, completing the transaction.