Which of the following is a difference between commercial paper and U.S. Treasury bills?
A) Unlike U.S. Treasury bills, commercial paper matures in 26 weeks.
B) Unlike U.S. Treasury bills, commercial paper is highly liquid.
C) Unlike commercial paper, U.S. Treasury bills are essentially risk-free.
D) Unlike commercial paper, U.S. Treasury bills are capital assets.

Question

Quizplus · Accepted Answer

U.S. Treasury bills are considered risk-free because they are backed by the U.S. government, whereas commercial paper carries some credit risk as it is issued by corporations.

Which of the Following Is a Difference Between Commercial Paper