One factor contributing to the rapid growth of the commercial paper market since 1970 is
A)the fact that commercial paper has no default risk.
B)improved information technology making it easier to screen credit risks.
C)government regulation.
D)FDIC insurance for commercial paper.

Question

Quizplus · Accepted Answer

Improved information technology has made it easier to screen credit risks, which has helped to increase the efficiency and transparency of the commercial paper market, and consequently, its rapid growth since 1970. While commercial paper generally carries low default risk, it is not entirely risk-free, and the growth of the market cannot solely be attributed to this factor. Government regulation and FDIC insurance do not specifically contribute to the growth of the commercial paper market.

One Factor Contributing to the Rapid Growth of the Commercial