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Which of the Following Is True of Commercial Paper

Question 32

Multiple Choice

Which of the following is true of commercial paper?


A) It is the most popular long-term investment for small businesses.
B) It acts as a verbal promise to pay a specific amount of money.
C) It is backed only by the name and reputation of the issuing company.
D) It is only sold to sole proprietors and small businesses.
E) It is only sold for durations of two years or more.

Correct Answer:

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