Asked by Cassie Collins on Apr 26, 2024
Verified
Commercial paper is a short-term security issued by ________ to raise funds.
A) the Federal Reserve Bank
B) commercial banks
C) large, well-known companies
D) the New York Stock Exchange
E) state and local governments
Commercial Paper
Short-term, unsecured debt issued by companies to finance immediate liquidity needs.
Short-Term Security
A financial instrument that typically matures in one year or less.
Well-Known Companies
Firms that have established a strong brand, reputation, and presence in their respective markets, often leading to a wider recognition among the public and investors.
- Uncover the components and devices pertinent to the money market.
Verified Answer
DP
Deepesh PatidarApr 27, 2024
Final Answer :
C
Explanation :
Commercial paper is a short-term, unsecured promissory note issued by large, well-known companies to raise funds. It is a common way for corporations to finance their short-term liquidity needs.
Learning Objectives
- Uncover the components and devices pertinent to the money market.
Related questions
The Bid Price of a T-Bill in the Secondary Market ...
The Smallest Component of the Fixed-Income Market Is _______ Debt ...
The Largest Component of the Fixed-Income Market Is _______ Debt ...
Which of the Following Securities Is a Money Market Instrument ...
Which One of the Following Is Not a Money Market ...