Large well-known companies often issue their own short-term unsecured debt notes directly to the public, rather than borrowing from banks; their notes are called ________.
A) certificates of deposit
B) repurchase agreements
C) bankers' acceptances
D) commercial paper

Question

Quizplus · Accepted Answer

Large well-known companies often issue their own short-term unsecured debt notes directly to the public, rather than borrowing from banks, and these notes are called commercial paper. Certificates of deposit are issued by banks, repurchase agreements involve the sale and repurchase of securities, and bankers' acceptances involve a bank's guarantee of a future payment.

Large Well-Known Companies Often Issue Their Own Short-Term Unsecured Debt