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.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term, unsecured promissory note issued by corporations with high credit ratings, typically sold in large denominations ranging from $100,000 to $1 million. This makes it accessible primarily to institutional investors rather than small investors.

Identify a True Statement About Commercial Paper