Commercial Paper Is Unsecured

question 30

Multiple Choice

Commercial paper is unsecured.Therefore,the companies that issue this short-term security:

• A) are typically large firms with top credit quality.
• B) frequently default.
• C) are typically small firms with top credit quality.
• D) are firms that have government-sponsored guarantees for the debt.

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Definitions:

Nondeceptive

Being honest and straightforward, without giving a false impression.

Truthful

Being honest or accurate, without lying, cheating, or stealing.

Marketing Messages

Communications directed towards potential customers with the aim of promoting products or services.

Implies Offers

Suggesting or indicating a proposal or opportunity without explicitly stating it.