Commercial Paper Has Which of the Following Advantages to the Issuer

question 40

Multiple Choice

Commercial paper has which of the following advantages to the issuer?

• A) It may be issued below the prime rate.
• B) It requires no compensating balances.
• C) It is secured by corporate assets to protect the buyer.
• D) a and b are both correct.

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Definitions:

Connective

Referring to connective tissue, which supports, binds together, and protects tissues and organs in the body.

Nerve

A bundle of fibers that transmits electrical impulses between the brain and parts of the body, facilitating communication and response.

LLQ

Stands for Left Lower Quadrant, referencing a section of the abdomen that is useful in identifying sources of pain or disease.

RUQ

Right Upper Quadrant, a term used in medicine to refer to a specific area of the abdomen.