Assume that a large corporation, such as General Electric, needs money in the short term. Which one of the following securities is that corporation most likely to issue to meet this need?

Question

Quizplus · Accepted Answer

Commercial paper is a short-term debt instrument issued by corporations to raise money quickly. It is typically used by large companies with strong credit ratings to meet short-term financing needs, such as payroll and inventory costs. Therefore, General Electric is most likely to issue commercial paper to meet its short-term financing needs.

Assume That a Large Corporation, Such as General Electric, Needs