Firms using commercial paper are generally required to maintain commercial bank lines of credit equal to the amount of the paper outstanding.

Name: Firms using commercial paper are generally required to maintain commercial bank lines of credit equal to the amount of the paper outstanding.
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Firms often maintain commercial bank lines of credit as a backup for their commercial paper. This ensures they have access to funds to repay the paper at maturity, especially if rolling it over is not feasible.

Firms Using Commercial Paper Are Generally Required to Maintain Commercial