As substitutes for bank loans, ________ consists of unsecured, short-term promissory notes over $100,000 issued by large banks, corporations, insurance companies, pension funds, public utilities, and state and local governments.
A) a revolving credit agreement
B) commercial paper
C) a line of credit
D) a transaction loan
E) factoring

Question

Quizplus · Accepted Answer

Commercial paper refers to unsecured, short-term promissory notes, typically issued by large entities like corporations and governments, as a way to raise funds without securing a traditional bank loan.

As Substitutes for Bank Loans, ________ Consists of Unsecured, Short-Term