Which of the following is best classified as a money market security?
A) Preferred stock
B) Corporate bond
C) Commercial paper
D) General obligation bond

Question

Quizplus · Accepted Answer

Commercial paper is a short-term, unsecured promissory note issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities. It is considered a money market security because it is a high-quality, short-term debt instrument.

Which of the Following Is Best Classified as a Money