Which of the following is an advantage of using commercial paper for short-term credit?
A)The interest rate is usually lower than for equivalent bank loans.
B)It is a readily available source of credit for most firms
C)It is a type of free credit.
D)It can be issued for very small amounts.

Question

Quizplus · Accepted Answer

Commercial paper typically offers lower interest rates compared to equivalent bank loans, making it a cost-effective option for short-term borrowing.

Which of the Following Is an Advantage of Using Commercial