Commercial paper is _____.
A) long-term with maturities greater than one year
B) short-term with maturities under six months
C) short-term with maturities that do not exceed nine months
D) long-term with maturities of greater than five years

Question

Quizplus · Accepted Answer

Commercial paper is a short-term debt instrument with maturities that usually do not exceed nine months. Option A is incorrect because commercial paper is not long-term debt. Option B is incorrect because six months is not a standard maturity for commercial paper. Option D is incorrect because maturities greater than five years are not characteristic of commercial paper.

Commercial Paper Is _____