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Which of the Following Is True of Commercial Paper

Question 75

Multiple Choice

Which of the following is true of commercial paper?


A) It is a secured long-term debt instrument issued by corporations.
B) It is always issued via an underwriter.
C) It may help a corporation to raise funds often at rates below those banks charge.
D) All corporations can tap the commercial paper market.
E) Total commercial paper outstanding in the US is smaller than total C&I loans.

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