Which of the Following Statements Is NOT Correct? Commercial Paper

question 5

Multiple Choice

Which of the following statements is NOT correct? Commercial paper

• A)is a very short term financial instrument.
• B)can get a backup line of credit from a bank.
• C)does not require credit rating as it is only issued by companies of very good quality.
• D)has interest paid thanks to a positive difference between its face value and its trading price.

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Definitions:

Public Bureaucracies

Organizations characterized by a hierarchical structure, formal rules, and a focus on fulfilling the administrative functions of the government or public sector.

Private Sector

The part of the economy that is run by private individuals and companies, rather than the government, and is driven by profit.

Public Sector

The part of the economy that is controlled by the government and includes government services and entities.

Profit And Loss

The financial statement that summarizes revenues, costs, and expenses to show the net profit or loss of a business over a specific time period.