What Is the Term Used for a Short-Term,unsecured Debt Sold

question 44

Multiple Choice

What is the term used for a short-term,unsecured debt sold by a large company to investors?

• A)commercial paper
• B)retail paper
• C)wholesale paper
• D)unsecured paper
• E)junk bond

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Definitions:

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Coerce Behavior

To compel or force someone to act in a certain way through pressure or threats.

Economic Efficiency

The optimal distribution of resources in society, taking into account all benefits and costs.

Government Failures

Occur when government intervention in the economy leads to inefficiencies, misallocation of resources, or negative outcomes contrary to the intended goals.