Asked by Radia Farid on May 26, 2024
Verified
Commercial paper is a short-term security issued by ________ to raise funds.
A) the Federal Reserve
B) the New York Stock Exchange
C) large well-known companies
D) all of these options
Commercial Paper
An unsecured, short-term debt instrument issued by companies to finance their immediate needs.
Large Well-Known Companies
Corporations that are widely recognized and established, often characterized by a significant market presence and a high volume of sales.
Short-Term Security
A financial instrument with a maturity date of one year or less, typically used for short-term financing needs.
- Gain insight into the attributes and intentions of assorted market investments, such as Treasury bills and commercial paper.
Verified Answer
FB
Felicia BurnsMay 30, 2024
Final Answer :
C
Explanation :
Commercial paper is typically issued by large corporations and financial institutions to raise short-term funds. The Federal Reserve and the New York Stock Exchange do not issue commercial paper, but they may play a role in regulating or facilitating its issuance and trading. Therefore, choice C is the best answer.
Learning Objectives
- Gain insight into the attributes and intentions of assorted market investments, such as Treasury bills and commercial paper.