Which of the Following Statements Is True of Commercial Paper

question 44

Multiple Choice

Which of the following statements is true of commercial paper?

• A) It cannot be issued for more than 365 days.
• B) It consists of treasury bonds.
• C) It is not backed by a pledge of collateral.
• D) It is normally secured.

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Definitions:

Federal Trade Commission

A U.S. federal agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.

Administrative Complaint

A formal grievance filed with a governmental agency, alleging wrongdoing or violation of rules by an entity or individual.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act is a federal law in the United States that prohibits creditors from discriminating against applicants based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant’s income derives from any public assistance program.

Creditors

Individuals or entities to whom money is owed by debtors for goods, services, or loans provided.