Which Statement Concerning Commercial Paper Is NOT True

question 89

Multiple Choice

Which statement concerning commercial paper is NOT true?

• A)Commercial paper generally carries an interest rate below the prime rate.
• B)Commercial paper is sold to money market mutual funds, as well as to other financial institutions and nonfinancial corporations.
• C)Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• D)Commercial paper is a type of unsecured promissory note issued by relatively large, strong firms.

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Definitions:

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Groups or categories that initiate or activate a specific response or action in a particular context.

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The act of making a choice or expressing an opinion in a formal setting, often used in the context of democratic processes to select leaders or decide on policies.

Clarification

The process of making something clearer or easier to understand by explaining or giving more details.

Single Solution

A singular approach or answer to solve a problem or address a challenge, often implying a lack of alternative options.