Short-term notes sold directly to investors by large,highly rated companies are called

A) commercial paper.
B) secured notes.
C) bonds.
D) debentures.

Commercial Paper

An unsecured, short-term debt instrument issued by companies to finance payroll, receivables, and other short-term liabilities.

Secured Notes

Debt instruments that are backed by a security interest in the borrower's assets, providing more assurance of repayment to the lender.

Debentures

A type of debt instrument that is not secured by physical assets or collateral but is backed by the general creditworthiness and reputation of the issuer.