Asked by Diana Gasparyan on May 03, 2024
Verified
Generally,commercial paper is considered a very high-risk security.
Commercial Paper
Short-term, unsecured promissory notes issued by companies to finance their short-term cash flow needs.
High-risk Security
Investments or assets that carry a higher than normal risk of loss, but potentially offer higher returns as compensation for the increased risk.
- Familiarize oneself with the sorting and risk evaluations of assorted bonds and securities.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
Commercial paper is generally considered a low-risk security because it is a short-term unsecured promissory note issued by corporations with a high credit rating, implying a low chance of default.
Learning Objectives
- Familiarize oneself with the sorting and risk evaluations of assorted bonds and securities.