Short-term notes,with maturities ranging from 3 days to 9 months,issued by well-known companies are known as:
A)negotiable CDs.
B)commercial paper.
C)federal funds.
D)repurchase agreements.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

Short-term notes issued by well-known companies are known as commercial paper. Negotiable CDs are similar but are issued by banks. Federal funds are overnight loans made between banks. Repurchase agreements involve the sale of securities with an agreement to buy them back at a future date.

Short-Term Notes,with Maturities Ranging from 3 Days to 9 Months,issued