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.

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Definitions:

Overall Unemployment Rate

The amount of the workforce that remains unemployed and is actively on the lookout for employment.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, characterized by a lack of demand for goods and services.

Unemployment Insurance

A government program that provides financial assistance to individuals who are unemployed through no fault of their own, offering temporary income support.

Computerized Job Bank

A digital platform or database that connects job seekers with employment opportunities.