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:

Economic Investment

The allocation of resources, usually monetary, into assets or projects expected to generate income or profit in the future.

Slave Population

The group of people who were forcibly brought to and held in servitude in various parts of the world, particularly notable in the context of American history prior to the 1865 abolition.

Legal Rights

Privileges or entitlements conferred upon individuals by law.

Slave Revolts

Uprisings led by enslaved people against their captors and oppressive systems, seeking freedom and the end of slavery.