_____________ is a short-term unsecured promissory note issued by a high credit-quality corporation with maturities of one to three months in length with an active secondary money.
A)A negotiable certificate of deposit (NCD)
B)A repurchase agreement
C)Commercial paper
D)Government bond
E)none of the above

Question

Quizplus · Accepted Answer

The description matches the definition of commercial paper, which is a commonly used form of financing for corporations with established creditworthiness. Negotiable certificates of deposit (NCDs) and repurchase agreements involve slightly different instruments for short-term borrowing, while government bonds have longer maturities and are typically issued by national governments rather than corporations.

_____________ Is a Short-Term Unsecured Promissory Note Issued by a High