The rate on commercial paper is generally higher than the prime rate.
A) True
B) False

Name: The rate on commercial paper is generally higher than the prime rate. A) True B) False
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Question

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The rate on commercial paper is generally lower than the prime rate because commercial paper is a short-term unsecured promissory note issued by companies with high credit ratings, whereas the prime rate is the interest rate that banks charge their most creditworthy customers.

The Rate on Commercial Paper Is Generally Higher Than the Prime