A type of unsecured promissory note issued by large, financially strong firms is called:

Question

Quizplus · Accepted Answer

The correct term for the unsecured promissory note issued by large, financially strong firms is commercial paper. Trade credit refers to the credit extended by one firm to another for purchasing goods or services. A compensating balance is the minimum balance that a borrower is required to maintain in their account with the lender. Revolving credit refers to credit that is available for use whenever needed and repaid based on a cyclical schedule. A promissory note is a written promise to pay a certain amount of money to a person or entity.

A Type of Unsecured Promissory Note Issued by Large, Financially