One type of private security held by the Fed is commercial paper. Which of the following is the most appropriate definition of this type of private asset?
A)A public bond with very short maturity.
B)A public bond with long term maturity.
C)A private bond with very short maturity.
D)A private bond backed by the federal government.
E)None of these.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term, unsecured debt instrument issued by corporations, not backed by the federal government, making it a private bond with very short maturity.

One Type of Private Security Held by the Fed Is