Commercial paper is much more liquid than money-market mutual funds because commercial paper is available to only the most creditworthy corporations.

Question

Quizplus · Accepted Answer

Money-market mutual funds are highly liquid because they invest in short-term, highly rated financial instruments, including commercial paper. While commercial paper is usually issued by creditworthy corporations, it is not necessarily more liquid than money-market mutual funds, as it depends on the specific commercial paper and fund.

Commercial Paper Is Much More Liquid Than Money-Market Mutual Funds