Commercial paper usually is issued
A) for 3 to 7 years.
B) for short-term financing by large corporations.
C) for short-term financing by small businesses.
D) by large corporations unable to get credit elsewhere.
E) by savings and loan associations.

Question

Quizplus · Accepted Answer

Commercial paper is typically issued by large corporations for short-term financing, usually ranging from 1 to 270 days. Small businesses may also issue commercial paper, but it is less common. Commercial paper provides an alternative source of funding for companies that may not want to or cannot obtain credit through traditional methods such as bank loans. Savings and loan associations are not typically involved in issuing commercial paper.

Commercial Paper Usually Is Issued