All of the Following Are Potential Advantages of Commercial Paper

question 95

Multiple Choice

All of the following are potential advantages of commercial paper EXCEPT

• A) flexible repayment terms.
• B) lower interest rates than comparable sources of short-term financing.
• C) no compensating balance requirements.
• D) ability to borrow very large amounts.

---

Definitions:

Social Network Sites

Online platforms that allow users to create personal profiles, interact with friends and family, and share content and experiences.

Viable Projects

Projects that are capable of succeeding or surviving, especially in terms of profitability or development.

Own Capital

Refers to the resources, financial or otherwise, that are personally invested by the owners into their business or project.

Moral Hazard

The risk that one party to a transaction has the incentive to take undue risks because the cost will fall on the other party.