Commercial paper facilitates the transfer of funds and payment.

Question

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Commercial paper is a short-term debt instrument used by corporations to raise funds for various purposes, such as working capital or capital expenditures. It is typically sold at a discount and matures in as little as one day to up to 270 days. By investing in commercial paper, investors can earn a return on their investment while providing the issuing corporation with the necessary funds to meet its financial needs. The transfer of commercial paper is facilitated through various financial intermediaries, including banks, securities dealers, and institutional investors. Overall, commercial paper plays an important role in facilitating the transfer of funds and payment within the financial system.

Commercial Paper Facilitates the Transfer of Funds and Payment