Asked by Great Amazing on Jul 04, 2024
Verified
Businesses use the commercial money market for short-term borrowing.
Commercial Money Market
A segment of the financial market where commercial banks, businesses, and government agencies raise funds by issuing short-term debt.
Short-Term Borrowing
Refers to loans or debt obligations that are due for repayment within a short period, typically less than one year.
- Explain the significance and operation of commercial paper in financial transactions.
Verified Answer
LK
Lokesh kumarJul 08, 2024
Final Answer :
True
Explanation :
Businesses utilize the commercial money market to meet their short-term borrowing needs, often to manage liquidity or finance working capital requirements.
Learning Objectives
- Explain the significance and operation of commercial paper in financial transactions.
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