Which of the Following Statements Is False

question 24

Multiple Choice

Which of the following statements is false?

• A) Unlike long-term debt, because of its short maturity, commercial paper is not rated by credit rating agencies.
• B) The interest on commercial paper is typically paid by selling it at an initial discount.
• C) Commercial paper is short-term, unsecured debt used by large corporations that is usually a cheaper source of funds than a short-term bank loan.
• D) Extending the maturity of commercial paper beyond 270 days triggers a registration requirement with the Securities and Exchange Commission (SEC), which increases issue costs and creates a time delay in the sale of the issue.

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Definitions:

Single Correct Answer

A concept often applied in standardized testing or traditional education settings where questions are designed to have only one right answer.

Imitate

The action of copying the behaviors, movements, or expressions of another person as a method of learning or social interaction.

Causal Relations

The connection between causes and effects, where one event or action leads to the occurrence of another.

Scientific Reasoning

The capacity to use systematic and logical thinking to understand natural phenomena, often involving observation, hypothesis formation, and experimentation.