Which One of the Following Statements About Commercial Paper Is

question 17

Multiple Choice

Which one of the following statements about commercial paper is NOT true?
Commercial paper issued in the United States

• A)is an unsecured short-term promissory note.
• B)has a maximum maturity of 270 days.
• C)is virtually always rated by at least one ratings agency.
• D)has no secondary market.
• E)carries an interest rate above the prime rate.

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Definitions:

Key Words

Specific, significant words within a text or speech that are essential to understanding the overall message or subject.

Empiricism

A theory that states knowledge comes only or primarily from sensory experience.

Knowledge

The understanding, awareness, or familiarity gained through experience or study.

Observation

Observation involves carefully watching, listening, and noting the characteristics or behavior of a subject or phenomenon without direct interaction or manipulation.