Which of the Following Statements Regarding Commercial Paper Is FALSE

question 47

Multiple Choice

Which of the following statements regarding commercial paper is FALSE?

• A)With dealer paper,dealers sell the commercial paper to investors in exchange for a spread (or fee)for their services.
• B)With dealer paper,the spread increases the proceeds that the issuing firm receives,thereby decreasing the effective cost of the paper.
• C)The minimum face value is $25,000,and most commercial paper has a face value of at least $100,000.
• D)With direct paper,the firm sells the security directly to investors.

---

Definitions:

Phenotypic Response

The observable physical or biochemical changes in an organism in reaction to environmental factors.

Genotype

The genetic makeup of an organism, representing its set of genes.

Evolution by Natural Selection

A process where organisms better adapted to their environment tend to survive and produce more offspring, driving the evolution of species.

Warming Climate

The global trend of increasing average temperatures, largely attributed to human activities such as greenhouse gas emissions.