Which of the following is TRUE of commercial paper? A) They are secur

QUESTION

Which of the following is TRUE of commercial paper?

A) They are secured.
B) They are not promissory notes.
C) They are long-term notes.
D) They are $100,000 or greater.
E) They are issued mainly by smaller institutions.

ANSWER

Answer: D
Explanation: D) Substitutes for bank loans, commercial paper consists of unsecured, short-term promissory notes over $100,000 issued by large corporations.