Asked by Maryam Ahsan on Apr 29, 2024
Verified
Which of the following is a form of short-term financing sold by corporations,such as Raytheon,that mature from 1 to 270 days from the date of issue?
A) Bonds
B) CDs
C) Treasury bills
D) Commercial paper
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable and inventories.
Short-Term Financing
Funding obtained for a period of one year or less, used to cover immediate needs such as working capital requirements.
- Pinpoint and expound upon the assorted types of debt securities and the entities that issue them.
Verified Answer
FT
fania tansriApr 29, 2024
Final Answer :
D
Explanation :
Commercial paper is a form of short-term financing used by corporations, including large entities like Raytheon, which typically matures within 1 to 270 days from the date of issue. It is an unsecured, short-term debt instrument.
Learning Objectives
- Pinpoint and expound upon the assorted types of debt securities and the entities that issue them.
Related questions
Veronica Just Bought a Bond from United Pet Group ...
The USDepartment of Treasury Sells What Type of Bonds ...
_____ Are Short-Term Debt Securities Issued by Governments,financial Institutions,and Corporations ...
________ Are Debt Securities That a Company Intends to Actively ...
________ Are Debt Securities a Company Intends and Is Able ...