Large companies with good credit ratings tend to rely on __________ for short-term financing.
A) the commercial paper market
B) private placements
C) finance companies
D) equity

Question

Quizplus · Accepted Answer

Large companies with good credit ratings tend to rely on the commercial paper market for short-term financing because it offers them low interest rates and the ability to refinance quickly. Commercial paper is a short-term unsecured promissory note that is issued by a corporation with a high credit rating, typically for a term of 30 to 270 days.

Large Companies with Good Credit Ratings Tend to Rely on __________