Commercial paper is
A)a time draft payable to a seller of goods,with payment guaranteed by a bank.
B)a loan to an individual or business to purchase a home,land,or other real property.
C)short-term funds transferred between financial institutions usually for no more than one day.
D)a marketable bank-issued time deposit that specifies the interest rate earned and a fixed maturity date.
E)a short-term unsecured promissory note issued by a company to raise funds for a short time period.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term unsecured promissory note issued by a company to raise funds for a short time period, typically ranging from a few days to a few months. It is issued by corporations, financial institutions, and other large organizations to meet their short-term funding needs. It is a popular source of short-term financing because it can be easily sold in the open market at a discount to its face value, making it an attractive investment option for investors.

Commercial Paper Is