Identify a true statement about commercial paper.

A) Access to the commercial paper market is restricted to small and medium enterprises.
B) Commercial paper has a maturity that ranges from 10 to 27 years.
C) Most commercial paper is secured.
D) Commercial paper is typically sold in multiples of $100,000 to $1 million.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations to finance their immediate operational needs.

Maturity

The stage in a product’s lifecycle or a company’s growth where growth slows down, and it reaches a steady state of maximum output or sales.

Secured

Protected against threat or harm, or in financial terms, backed by collateral.