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:

Intertidal Zone

The marine shoreline area between the high-tide mark and the low-tide mark.

Filter Feeders

organisms that feed by straining suspended matter and food particles from water, typically done by aquatic animals.

Mode of Nutrition

The method by which an organism obtains its food and energy, varying across species from photosynthesis in plants to different forms of heterotrophy in animals.

Structure Labeled

A specific part or component of an object or system that has been marked or named for identification or explanatory purposes.