Which intermediary relies most heavily on commercial paper as a source of funds?
A)money market mutual funds
B)finance companies
C)insurance companies
D)S&Ls

Question

Quizplus · Accepted Answer

Finance companies rely heavily on commercial paper as a source of funds because they specialize in making loans to consumers and businesses, and they use commercial paper to finance those loans. Money market mutual funds, insurance companies, and S&Ls also use commercial paper as a source of funds, but not to the same extent as finance companies.

Which Intermediary Relies Most Heavily on Commercial Paper as a Source