Which of the Following Statements Is FALSE

question 45

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:

Horticultural

Pertains to the art or practice of garden cultivation and management.

Surplus Production

The production of goods or services in quantities greater than needed for personal or local consumption, allowing for trade.

Primary Mode

The most prominent or frequently used method or form of something, particularly in the context of transportation or production.

Subsistence

The means by which an individual or group sustains life, usually referring to basic necessities like food and shelter.