Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)Unlike long-term debt,because of its short maturity,commercial paper is not rated by credit rating agencies.
• B)The interest on commercial paper is typically paid by selling it at an initial discount.
• C)Commercial paper is short-term,unsecured debt used by large corporations that is usually a cheaper source of funds than a short-term bank loan.
• D)Extending the maturity of commercial paper beyond 270 days triggers a registration requirement with the Securities and Exchange Commission (SEC),which increases issue costs and creates a time delay in the sale of the issue.

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Definitions:

Joint Cavity

The space between the articulating surfaces of bones in a synovial joint, filled with synovial fluid that lubricates the joint.

Fibrous Joint

Bones connected by fibrous tissue with no joint cavity; includes sutures, syndesmoses, and gomphoses.

Synovial

Relating to or containing synovia (a substance that serves as a lubricant in a joint, tendon sheath, or bursa).

Cartilaginous

Describing a type of tissue that is not as hard as bone but provides flexibility and support; it is found in areas like the ears, nose, and joints.