An IOU is most similar to which type of bank loan?
A) business trade credit
B) revolving credit
C) collateralized credit
D) commercial paper

Question

Quizplus · Accepted Answer

An IOU is an informal acknowledgment of debt, similar to commercial paper, which is an unsecured, short-term debt instrument used by companies to finance their operations. Both are essentially promises to pay back borrowed funds.

An IOU Is Most Similar to Which Type of Bank